Worth Running, Chocolate Spread And Packaged Milk Business Can Increase Revenue And Profit Of Sari Roti Producers In 2024

Sari Bread Factory. (Photo: Doc. Nippon Indosari Corpindo)

JAKARTA - The plan for Sari Roti producer PT Nippo Indosari Corpindo Tbk (ROTI) to enter the packaged milk and chocolate spread business has received a favorable assessment from an independent appraiser. In fact, the two new businesses can add value to Nippon Indosari's business development.

This is stated in the assessment report of KJPP Rengganis, Hamid & Partners (KJPP RHR) in Nippo Indosari's information disclosure to the Indonesia Stock Exchange, Monday 20 June.

"From a business perspective, it shows that the addition of chocolate spread and packaged milk products can create value for Nippon Indosari," the report said.

In addition, Nippon Indosari's management has experience in managing the manufacturing, sales, and distribution of bread, so it is considered to have good experience and ability to run a chocolate spread and packaged milk product business in the future.

KJPP RHR explained, based on the fairness analysis of the feasibility study carried out including an analysis of market feasibility, technical feasibility, business model feasibility, management model feasibility, and financial feasibility, we are of the opinion that the business development plan in this feasibility study is feasible to implement.

As is known, Nippon Indosari is engaged in the food trading business, in this case Bread, plans to improve its performance by adding business activities in the form of trading of chocolate spread and packaged milk. This business activity is currently not one of the company's business fields.

For chocolate spread products, the company will carry out its own production by utilizing the investment in a chocolate spread factory which is currently under construction and is supported by a competent workforce. As for packaged milk products, they will be produced by a third party, namely a milk factory with very experience in producing packaged milk.

Meanwhile, the contribution of the chocolate spread and packaged milk business in 2024 is expected to reach around 6 percent of revenue in 2021 and around 3 percent of gross profit in 2021.

Meanwhile, running a chocolate spread and packaged milk business in 2024 is estimated to use around 1 percent of Equity as of December 31, 2021.