SIDO - FY23 earnings declined by 13.9% yoy

SIDO - FY23 earnings declined by 13.9% yoy Industri Jamu dan Farmasi Sido Muncul' (SIDO) revenue reached IDR1.21 tn (-3.8% yoy/+70.3% qoq) in 4Q23, mainly due to the unpredictable weather' changes and the increasing awareness of health as new covid cases was higher qoq in 4Q23. Thus, SIDO' FY23 revenue declined by 7.8% yoy to IDR3.57 tn. Note that, historically, SIDO' 4Q sales was always higher than 3Q' and the significant growth qoq in 4Q23 was mainly due to much lower 3Q23' performance than expected (low base). SIDO' 4Q23 net profit reached IDR364 bn (-5.3% yoy/+162.9% qoq) mainly due to lower sales yoy. As a result, SIDO' FY23 net profit declined by 13.9% yoy. Fortunately, SIDO had better product mix and cost management in 4Q23. Thus, SIDO' gross and EBIT margin expanded yoy and qoq in 4Q23. Also thanks to higher ASP and better product mix in 2023, SIDO' FY23 gross margin expanded yoy. Yet, SIDO' FY23 EBIT and net margins still contracted yoy, mainly due to much lower 3Q23' margin yoy than expected. (Source : Company, KBVS)