ROTI booked positive growth in Q1-2020

11 months ago . 1 min read
MP
Marella Putri
Writer at Forbes Indonesia
ROTI booked positive growth in Q1-2020
Wendy Yap, CEO of PT Nippon Indosari Corpindo. Photo courtesy of Forbes Indonesia.

by Robert Yota

Publicly-listed bread producer PT Nippon Indosari Corpindo (ROTI), famously known for its Sari Roti brand, grew positively in Q1-2020. According to its recent report, ROTI booked a net profit of Rp 77.8 billion, a 20% increase year-on-year (YoY) from last year’s Rp 64.8 billion. The earnings growth can be attributed to the rise in net sales during this year’s first quarter. The company recorded net sales of Rp 912.9 billion YoY, a 15.3% increase from last year.

Its traditional and modern trade channels drive the growth in sales. In traditional trade, ROTI’s net sales grew by 26.1% YoY to Rp 227 billion. Meanwhile, its sales via modern trade also increased by 13.5% YoY into Rp 657 billion in this year’s first quarter. The net sales increase in modern trade is mainly due to the company’s focus on distributing more of its top products and increasing market penetration in minimarkets.

The strong performance of ROTI also reflected through its corporate bond, which has been ranked AA- (stable) for the last seven years by credit rating agency PEFINDO. According to the agency’s latest credit rating report on ROTI, the bread producer is ranked AA- due to its stable market position as a leading mass-market bread producer (maintaining a 90% market share for mass-produced bread sector), healthy cash flow protection measures, and operational support from shareholding partners.

ROTI has spent Rp 115.3 billion of capital expenditure (capex) in Q1-2020, or equivalent to 28.8% of this full-year allocation of Rp 400 billion. Most of its capex was used to increase production capacity by constructing two new plants in Pekanbaru and Banjarmasin, which are expected to commence by the end of this year.

MP
Written By
Marella Putri
Writer at Forbes Indonesia
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Companies