XA Update Report | PT Industri Jamu Dan Farmasi Sido Muncul Tbk. (SIDO) – Energy Still Flowing, But Catalyst Yet to Stir

 

By Steven Willie (Research Associate)

11-Mar-2026

 

SIDO recorded FY25 revenue growth of +4% YoY to IDR 4.08 tn (99% of our estimates), primarily supported by the F&B segment, which grew +12% YoY to IDR 1.46 tn. 4Q25 revenue rose +5% YoY (+50% QoQ) to IDR 1.35 tn, contributing 33% of FY25 revenue and reaffirming the quarter as the key earnings driver. Gross margin in 4Q25 declined to 61% (vs. 63% in FY24), pressured by COGS growth of +11% YoY. On FY25, gross margin slightly eased to 58% (vs. 59% in FY24). Operating profit increased +5% YoY to IDR 1.54 tn, supported by disciplined cost management as A&P spending declined to 10% of sales (vs. 12% in FY24), resulting in a stable operating margin of 38%. Consequently, FY25 net profit grew +5% YoY to IDR 1.23 tn, in line with our estimates.

 

 

 

🔹 FY25 & 4Q25 Financial Performance

 

• Steady Topline Growth Driven by Strong F&B Momentum. SIDO recorded FY25 revenue growth of +4% YoY to IDR 4.08 tn (99% of our estimates), primarily supported by the F&B segment, which grew +12% YoY to IDR 1.46 tn, lifting its contribution to 36% of revenue (vs. 33% in FY24). Growth was largely driven by volume gains amid improved mobility and strong activity in commodity-related sectors, which supported demand for energy drinks. Meanwhile, the Herbal Medicine & Supplement and Pharmacy segments posted muted growth of +0.3% YoY and +0.6% YoY, respectively.

 

 

• A Solid Finish into Year-End. 4Q25 revenue rose +5% YoY (+50% QoQ) to IDR 1.35 tn, contributing 33% of FY25 revenue and reaffirming the quarter as the key earnings driver. Segment-wise, F&B delivered strong growth of +34% YoY (+24% QoQ), while pharmacy increased +8% YoY (+13% QoQ). In contrast, Herbal Medicine & Supplement declined -6% YoY, though it rebounded strongly (+69% QoQ).

 

 

•Margins Slightly Squeezed by Higher Input Costs. Gross margin in 4Q25 declined to 61% (vs. 63% in FY24), pressured by COGS growth of +11% YoY. On FY25, gross margin slightly eased to 58% (vs. 59% in FY24). Despite raw material cost pressures, selective ASP adjustments and improved product mix helped cushion the decline. Notably, the F&B segment posted a strong margin expansion to 44% (vs. 40% in FY24), supported by more favorable input costs.

 

 

• Profitability Intact on Leaner Spending. Operating profit increased +5% YoY to IDR 1.54 tn, supported by disciplined cost management as A&P spending declined to 10% of sales (vs. 12% in FY24), resulting in a stable operating margin of 38%. Consequently, FY25 net profit grew +5% YoY to IDR 1.23 tn, in line with our estimates.

 

 

 

🔹 FY26 Growth Outlook Remains Moderate

 

• Herbal Roots Tapping Deeper Into Overseas Markets. SIDO’s international business remained a bright spot, growing +31% YoY and contributing 9% of FY25 revenue (vs. 7% in FY24). Malaysia remains the largest export market (~4% of total sales), followed by Nigeria and the Philippines (~1–2%). Management is strengthening direct market penetration and retail channel presence in these markets, where retail distribution remains sizable. We expect this strategy to lift international contribution to around 10–11% of revenue in FY26.

 

 

• Management Guidance Points to Moderate Growth. Management guides FY26 revenue and net profit growth of +5–8% YoY, broadly in line with our forecast of +6% YoY, implying IDR 4.31 tn revenue and IDR 1,30 tn net profit. FY26 capex is projected at IDR 125–150 bn, mainly allocated for maintenance, operational efficiency, and digitalization, significantly higher than FY25 realized capex of IDR 61 bn.

 

 

 

🔹 BUY Recommendation with Target Price of IDR 590/Share (Prev. IDR 700)

 

• We maintain our BUY rating on SIDO with a revised target price of IDR 590/share (previously IDR 700). The lower TP reflects a more conservative valuation multiple amid limited near-term catalysts to sustain its previous premium valuation, despite stable earnings prospects. Nonetheless, we remain constructive on SIDO’s long-term outlook, supported by resilient domestic demand, strong F&B momentum, and gradually expanding international exposure, which should continue to underpin steady earnings growth and robust cash generation.

 

 

Download Full Report HERE.

 

 

 

 

NH Korindo Sekuritas Indonesia berizin dan diawasi Otoritas Jasa Keuangan (OJK). Untuk informasi lebih lanjut, anda dapat menghubuni CS kami via email CSO@nhsec.co.id