“Investors and the public markets recognise that. Aston Zheng, a vice president at the private equity firm who led the deal, said the starting points were the immediate tangible benefits of growing revenues, growing the bottom line, and strengthening supply chains by pursuing change in an ESG friendly manner. These figures weakened during 2022, with EBITDA and net profit tracking at IDR 730.7m and IDR 720.4bn, respectively, as of September.Īffinity’s initial approach to the investment emphasised alignment with management around financial goals. The programme cost IDR 12.8bn.īetween 20, revenue increased 56% to IDR 4trn, EBITDA grew 140% to IDR 1.6trn, and net profit more than doubled to IDR 1.3trn. During virus outbreaks, the company worked with regional police and government organisations to donate and distribute vitamins and supplements to staff and the general public across South Sumatra and Central Java. There was also a sense that Sido was becoming a more integral part of the communities in which it operates. These included a range of vitamin C drink sachets and immunity-boosting capsules based on various herbal or mineral extracts. From 2020 to 2022, 15 new products were launched that specifically catered to COVID-19 symptoms. Part of this is attributable to a rise in health and wellness awareness. The number of distribution outlets increased 69% between 20 to 135,000. The pandemic had a pervasive impact on the business, from sales and product positioning to employee retention and work-from-home policies. “People in the business community have realised that by managing community relationships well and producing a good product, we were able to have some really good growth even during a difficult period like COVID-19.” Sido’s growth trajectory shows us how, with ESG principles, we’re able to grow sustainably over time,” said Sarah Pang, head of ESG and sustainability at Affinity. “Gaining momentum on ESG initiatives comes from doing one initiative, doing it well, showing results, and then bringing that positive momentum into the next project. It was trading around IDR 770 as of late January, giving the company a market capitalisation of around IDR 23.3trn (USD 1.5bn). The value of the stock has almost tripled during the holding period. About 60% of the company was in the founding family’s hands at the time.Īffinity’s position has been pared back to 17.1% today, but the private equity firm remains the largest institutional investor. Affinity acquired 21.1% of Sido in December 2017 for about USD 180m. It would be an ambitious agenda in a control situation, perhaps doubly so with a minority stake in a publicly listed company. Five pillars were considered core to the strategy: environmental preservation, inclusive business, employee welfare, product integrity, and sustainable sourcing. Affinity Equity Partners’ plan for Indonesian herbal wellness and medicine brand Sido Muncul was all about being holistic in environmental, social, and governance (ESG) practices.
0 kommentar(er)
