JAKARTA. PT Industri Jamu dan Farmasi Sido Muncul Tbk (SIDO), the pharmaceutical company with the highest market capitalisation in Indonesia Stock Exchange (IDX), will allocate capital expenditure of approximately IDR 150-175 billion next year.

David Hidayat, President Director of SIDO, revealed that the capital expenditure will be utilised for production facility maintenance. In addition, as quoted by Kontan, he said that some portion will be allocated to technology development and digitalisation to support operation and marketing.

With said capex budget, SIDO aims to secure low double-digit growth in performance next year. “We conservatively project double-digit growth, a minimum of 10%, both in revenue and net profit,” Hidayat said.

In order to boost growth, SIDO will expand the distribution and introduce new products for gen Z and millennials, as both generations are believed to carry great market potential. “We will reach them through digital market penetration,” added Hidayat.

Until September 30, 2024, SIDO managed to bring in profit of IDR 778.11 billion, 32.65% year-on-year (yoy) from the number seen in the same period alst year.

According to IDNFinancials record, SIDO showed great improvement due to wide net profit margin of 29.62%, the highest amongst industry peers. For example, PT Kalbe Farma Tbk (KLBF) only reported net profit margin of 9.81%, PT Tempo Scan Pacific Tbk (TSPC) 10.67%, and PT Soho Global Health Tbk (SOHO) 4.57%. (KR/ZH)