SIDO - Targets double digits growth in sales

Industri Jamu dan Farmasi Sido Muncul (SIDO) is optimistic and targets around 10-15% yoy revenue growth in 2023 vs a 3.98% yoy revenue decline in 2022. In order to achieve its target, SIDO had set several strategy; business development of its subsidiaries, to adjust its distribution system (shorter distribution line), product developments, and strengthening its product export. Recently, SIDO launched an application called My Sidomuncul - an apps which connects its store partner directly with SIDO' distributors for a quick product procurement. SIDO had set IDR197 bn in capex for its greenhouse project, to acquire new production and R&D equipments. As per end of May 2023, SIDO has used 36% of 2023' capex. (Source : Kontan) Comment : Aside from a 3% yoy sales growth in 1Q23, we still expect SIDO could achieve its 2023' sales target on the back of more festive events in 2H23 and election' season to start in 4Q23.