UOB Kay Hian Report – October 30, 2024

Indonesia: Consumer Goods Stability and Infrastructure Initiatives

Nippon Indosari Corpindo: Steady Performance in Consumer Staples

Nippon Indosari Corpindo (ROTI IJ), Indonesia’s largest bread producer, delivered a stable performance in its 3Q24 report, maintaining a consistent hold in the consumer staples sector. The company’s return rate has increased in line with projections, indicating a solid alignment with market expectations. With its robust distribution network, Nippon Indosari has managed to capture a significant portion of Indonesia’s fast-growing packaged food market, which benefits from urbanization and rising consumer demand for convenience foods.

The 3Q24 financials show Nippon Indosari’s adaptability to rising input costs, which the company has managed effectively to maintain its profit margins. The company’s strategic focus on operational efficiency and optimizing supply chain logistics has helped mitigate cost pressures, enabling stable growth despite economic headwinds. Holding a “HOLD” rating, Nippon Indosari is positioned to continue steady performance, supported by increasing urban demand and a strong product portfolio that resonates with Indonesia’s diverse consumer base.

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