Jakarta, Indonesianpost.com – Herbal medicine industry Sido Muncul (SIDO) on Wednesday reported a net profit of Rp 448.1 billion ($29.8 million) in the first half of the year, increasing slightly from Rp 445.59 billion in the same period of last year.
The Semarang-based company said it booked Rp 1.65 trillion in sales, compared to Rp 1.61 trillion in the first semester of 2022. During the period, sales and marketing costs have been reduced to Rp 198 billion from Rp 200 billion, but other operational costs soared to Rp 37.3 billion from Rp 11 billion.
Market analyst Vanessa Karmajaya has predicted that Sido Muncul will recover strongly next year in line with improving people’s purchase power and new innovations and distribution expansion by the company.
“Growing public awareness toward herbal medicine will become a booster for the company’s financial performance in the future,” said Vanessa, a researcher from RHB Sekuritas Indonesia.
RHB Sekuritas maintains a buy recommendation for Sido Muncul shares with a target price of Rp 900, as the company is on track to book an annual net profit of Rp 1.2 trillion this year, from Rp 1.1 trillion in 2022.
For more than seven decades, Sido Muncul has launched more than 300 herbal medicine brands including the famous herbal flu relief syrup Tolak Angin and supplement drink Kuku Bima.