Nippon Indosari, The Sari Roti Producer Owned By Anthony Salim Conglomerate Spends IDR 480 Billion For Shares Buyback

Illustration. (Photo: Doc. Sari Roti)

JAKARTA - Sari Roti producer, PT Nippon Indosari Corporindo Tbk (ROTI), will buy back the company's shares (buyback) by allocating as much as IDR 480 billion. The maximum number of shares to be purchased by ROTI is 300 million shares.

Quoted from the information disclosure page of the Indonesia Stock Exchange (IDX), Wednesday, April 21, this share buyback refers to Circular No.3/SEOJK.04/2020 on March 9, 2020, regarding other conditions as market conditions fluctuate significantly.

Director of ROTI, Arlina Sofia said that the buyback period will be carried out from April 20, 2021, to July 19, 2021. The company owned by Anthony Salim conglomerate limits the purchase price of shares to a maximum price of IDR 1.600 per share.

Furthermore, said Arlina, the implementation of this buyback will not result in a decrease in income and will not have an impact on the company's financing costs. The funds used are the company's internal funds that come from operational activities.

There is no change in the company's pro forma profit for this corporate action. However, this stock buyback can stabilize prices in volatile market conditions.

"The buyback of the company's shares also provides flexibility for the company in managing long-term capital", she said.

For information, in 2020, the company posted a net profit attributable to the owners of the main company of IDR 215.05 billion in the period ended 31 December 2020. The net profit decreased 28.56 percent from the previous year of IDR 301 billion.

Sari Roti's net sales last year reached IDR 3.21 trillion, a slight decrease of 3.75 percent from 2019 amounting to IDR 3.33 trillion. In detail, these sales were contributed by sales of the bread of IDR 2.47 trillion, up from the previous IDR 2.44 trillion.

Meanwhile, sales of sweetbreads fell to IDR 1.08 trillion from the previous IDR 1.28 trillion. Others contributed from the sales of cake IDR 73.61 billion and IDR 11.43 trillion others.