Sido Muncul's Profits Decline Through Q3 2023 Amidst More Selective Consumers

PT Industri Jamu dan Farmasi Sido Muncul Tbk (SIDO) experienced a decline in performance during the January-September 2023 period.

During this period, SIDO recorded a net profit of Rp586.57 billion, a drop of 18.6% year-on-year (yoy) compared to the January-September period of the previous year, which saw a profit of Rp720.4 billion.

Sales, meanwhile, reached Rp2.36 trillion by the end of Q3 2023. This figure decreased by 9.7% (yoy) from the Rp2.61 trillion recorded at the end of Q3 2022.

The decline in Sido Muncul's sales occurred across all business segments. Sales in the herbal jamu and supplements segment fell by 12.13% (yoy) to Rp1.45 trillion.

Sales in the food and beverage segment decreased by 2.64% (yoy) to Rp820.39 billion, while the pharmaceutical segment plummeted by 25.55% to Rp85.41 billion.

In line with the sales decline, SIDO's cost of goods sold also decreased by 9.95% (yoy) to Rp1.09 trillion by the end of Q3 this year.

Sido Muncul's management stated that the decline in sales performance was influenced by a shift in consumer behavior.

"The increase in rice prices has impacted the decline in demand for consumer health products, as consumers are now more selective in their spending compared to the previous quarter," wrote SIDO's management in its press release on Monday, October 30, 2023.

Despite the decline in sales, SIDO claims to have maintained a stable market share. The company's market share increased slightly by 1.4% (yoy) to 73% in Q3 2023.

"The current sales challenges are viewed as short-term challenges, which are expected to be overcome as purchasing power improves," explained SIDO's management.

(See also: [Sales of Jamu, Sido Muncul Selected to Enter LQ45 in 2023](https://databoks.katadata.co.id/datapublish/2023/03/31/jualan-jamu-sido-muncul-terpilih-masuk-lq45-pada-2023))