Indonesian Political, Business & Finance News

ROTI Distributes Rp450 Billion Dividend Equivalent to 10% Yield, Enters Feed Business

| | Source: BAREKSA.COM Translated from Indonesian | Business
ROTI Distributes Rp450 Billion Dividend Equivalent to 10% Yield, Enters Feed Business
Image: BAREKSA.COM

PT Nippon Indosari Corpindo Tbk (ROTI) has officially approved the distribution of a cash dividend amounting to Rp450 billion at its Annual General Meeting of Shareholders held on 7 April 2026 in Jakarta. According to research from Ciptadana Sekuritas Asia (8/4), this amount equates to approximately Rp80.04 per share, offering a potential return (dividend yield) of around 10.7% based on an assumed share price of Rp745.

In addition to the dividend distribution, ROTI has confirmed its expansion into the animal feed business. The company plans to produce feed flour independently through an investment in building a feed mill facility. This step is part of a strategy to diversify its operations beyond its main business.

Management assures that this expansion will not disrupt the company’s core operations, which have traditionally focused on bread and pastry production. With adequate workforce support, ROTI is optimistic about running both business lines simultaneously.

From a market perspective, the double-digit yield dividend is the primary attraction for investors, particularly those seeking passive income. Meanwhile, the plan to expand into animal feed is viewed as neutral by market participants, as details on implementation and strategic direction still require further scrutiny.

For the fiscal year 2025, ROTI recorded a net profit of Rp256.44 billion. The company also reported retained earnings not restricted for use at Rp193.55 billion, with total equity reaching Rp2.04 trillion.

In conclusion, ROTI offers an attractive dividend with a yield of around 10.7%, while the expansion into the animal feed business remains neutral and awaits clarity on execution.

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