Profitability Insights from Sido Muncul: A Five-Year Financial Analysis

Abstract

This study examined the profitability dynamics of PT Industri Jamu dan Farmasi Sido Muncul Tbk (SIDO) over 2021–2025, focusing on differences between revenue growth and earnings performance. A descriptive quantitative design was employed using secondary data from the company's annual financial statements. Profitability was assessed through Gross Profit Margin (GPM), Net Profit Margin (NPM), Return on Assets (ROA), and Return on Equity (ROE), with annual comparisons against the reference benchmarks specified in the study. The results revealed declining profitability during 2022–2023 followed by recovery in 2024–2025. Average GPM reached 57.20%, consistently exceeding the 30% benchmark, while average NPM was 29.34%, remaining above the 20% benchmark throughout the period. Average ROA was 29.12%, with annual values exceeding the 30% reference only in 2021 and 2025. Average ROE reached 33.78%, rising to a five-year high of 39.4% in 2025. Despite sales exceeding their 2021 level in 2025, net profit and NPM remained lower than their initial values. These differences indicate that improvements in revenue, margins, and resource-based returns did not progress uniformly. The findings support multidimensional profitability assessment while providing descriptive evidence for broader financial performance evaluation and further analysis of earnings efficiency across changing business conditions in Indonesia's pharmaceutical manufacturing sector.