Despite 19% Performance Decline, Sido Muncul's Tolak Angin Maintains 72% Market Share

JAKARTA, KOMPAS.com – PT Industri Jamu Dan Farmasi Sido Muncul Tbk recorded a 19 per cent decline in revenue for the first quarter of 2026 compared to the same period in the previous year.

In the first quarter of 2026, the company’s revenue was recorded at Rp640.5 billion, while the same period last year was Rp789.1 billion.

Sido Muncul’s President Director, Dr (HC) Irwan Hidayat, stated that the revenue decline was not caused by a drop in end-consumer demand.

The revenue decline is the impact of inventory adjustment policies at the distributor level. This policy was taken to address excessive stock accumulation in the distribution network.

Management estimates that full normalisation will be achieved as distributor stocks return to ideal levels.

“The decline is not due to reduced demand, but rather we are conducting an inventory adjustment. Market demand at the retail level remains stable, even increasing in some regions,” Irwan said during a press conference in Jakarta on Monday (12/5/2026).

The accumulation of stock at distributors was influenced by tiered sales patterns and distributors purchasing at old prices at the end of 2025. In the tiered sales system, distributors receive incentives in the form of lower prices or rewards if they purchase in certain quantities.

This condition caused excessive inventory buildup at the distributor level. Such accumulation has the potential to create operational inefficiencies and damage product prices in the market.

“They bought at old prices, then sold cheaply in the market. Meanwhile, the official price has already increased, but they still sell below that price. This damages the market,” he explained.

Although the company’s revenue has declined, market demand at the retail level remains stable. In fact, demand shows an increase in Java and Sumatra.

Irwan emphasised that sales data from distributors to stores does not show a significant decline. This proves that Sido Muncul’s business fundamentals remain strong and end-consumer demand is unaffected.

“The financial report shows a decline because we limited sales to distributors. However, consumer demand has not decreased, and in some regions, it has even increased,” he said.

Sido Muncul’s flagship products continue to maintain their position as market leaders in various categories. Tolak Angin commands 72 per cent of the herbal cold remedy market share based on Nielsen data.

In addition to Tolak Angin, other products also dominate their respective categories. Kuku Bima holds 51 per cent of the energy drink market. Then, products like Esemag, Tolak Linu, herbal supplements, and other powdered jamu also maintain their positions as market leaders.

This dominant position in various product categories forms a strong foundation for management’s optimism in facing 2026 challenges.

Irwan stated that with strong market demand and the right strategies, the company is confident in maintaining profitability performance.

Coinciding with the 75th anniversary of Sido Muncul in November 2026, the company is preparing six strategic steps to drive long-term growth.

First, launching the SidoHerbalPedia portal as a platform to educate the public on herbal-based treatments.

This portal is expected to boost sales of herbal food supplement products while increasing public awareness of the benefits of Indonesian herbs. SidoHerbalPedia will contain information on clinically tested jamu based on research.

Second, conducting upstream research to improve the quality of spice plants as main raw materials. This step is important to ensure the quality of jamu products from the source of raw materials.

Third, developing research on medicinal plants for various diseases such as cancer, diabetes mellitus, and immunity enhancement. This research aims to expand the portfolio of scientifically based herbal products.

Fourth, conducting preclinical tests on existing Sido Muncul products. This step aims to strengthen scientific validation of product efficacy and increase consumer trust.

Fifth, expanding the export market by entering mainstream markets abroad. This year, Sido Muncul plans expansion to Saudi Arabia and China by registering products for sale in mainstream markets.

Currently, Sido Muncul products abroad are mostly circulating in secondary markets or Indonesian stores. By entering mainstream markets in Saudi Arabia and China, the company targets a significant increase in export sales.

“We will register products in Saudi Arabia to enter the mainstream market. If possible, we will also enter China,” Irwan said.

Sixth, maintaining consistent product quality across all business lines. The company will also optimise cost efficiency through production optimisation, packaging, supplier management, promotional advertising, and supply chain.

In addition to the six strategies above, Irwan stated that the company will remain vigilant against several external challenges, one of which is global geopolitical dynamics driving up packaging raw material prices.

However, the company can still manage the price increase. This is because around 90 per cent of Sido Muncul’s raw materials come from domestically. With a cost structure dominated by local raw materials, the impact of US dollar exchange rate fluctuations against the rupiah is relatively limited.

“We are not a pharmaceutical factory that is 100 per cent import-dependent. Our raw materials are 90 per cent local, so the exchange rate impact is not too significant,” he said.

Imported raw materials, he continued, only account for 5-6 per cent of total needs, mostly auxiliary production materials. Meanwhile, plastic packaging affected by price increases due to exchange rate fluctuations only contributes 5-7 per cent of total production costs.

Irwan is optimistic about the prospects of the herbal industry and Sido Muncul’s performance in 2026. Increasing public awareness of health is the main catalyst.