Credit: PT Nippon Indosari Corpindo.

JAKARTA (TheInsiderStories)Indonesia’s leading bread maker PT Nippon Indosari Corpindo Tbk (IDX: ROTI) plans to buy back 10 per cent of the public stake or equivalent to 618.64 million shares.

Vice President Investor Relation and Corporate Communications of ROTI Lukito Kurniawan Gozali on Tuesday (17/06) said the buyback will be conducted within the next 18 month so that company cannot disclose the share price.

“The share price and total transaction cannot be disclosed yet,” he added, as quoted by Kompas.

He said the buyback plan was approved through the extraordinary general meeting of shareholders on Tuesday (17/08) in Jakarta. The company will use internal cash to conduct this buyback.

This corporate action is intended to stabilize the company’s stock price. The buyback plan will provide flexibility for the company in managing long-term capital.

ROTI shares weakened 25 points or 2.6 per cent at Rp935 per share in the first session trading today (17/7). The company’s stock decreased by 26 per cent in the year to date.

ROTI eyes 15 per cent sales growth in 2018. the firm booked Rp659 billion in the first quarter of this year, 9 per cent up from Rp602 billion in the first quarter last year.

The company booked Rp356 billion in gross profit in the first quarter of this year, a 19 per cent increase from Rp299 billion in the first quarter of last year. Furthermore, the earnings for the year attributable to owners of the parent company recorded at Rp29.05 billion by March 2018.

Nippon Indosari is a leader and pioneer in Indonesia’s mass-produced, branded bread segment. Established in 1995, the Company has 10 manufacturing facilities across eight cities across the country.

Marketed under its own Sari Roti brand, Indosari produces and sells a wide range of bread and cake products which have become a recognized staple in many Indonesian homes. Indosari’s products are distributed across its extensive network of 67,000 points of sale across both modern trade and general trade channels.