PZZA prepares Rp 60 billion for buyback
JAKARTA. PT Sarimelati Kencana Tbk (PZZA) plans to conduct a buyback of its shares, since its share price fell by 31.6% to Rp 770 per share. The company prepares Rp 60 billion budget for that purpose.
Kurniadi Sulistyomo, Corporate Secretary of PZZA, said the decline in share prices did not reflect the company's performance. "So the company intends to show its commitment in order to increase shareholders' value by returning excess free cash flow," explained Sulistyomo in his official statement.
The buyback fund, said Sulistyomo, will be taken from the company's retained earnings, which reached Rp 409 billion as of September 2019. He also ensured that the buyback would not interfere with the company's performance.
For information, up to the third quarter of 2019, PZZA's performance grew positively. The sales of the owner of the Pizza Hut business grew by 14% year on year (YoY) and its net profit grew by 47% YoY. (KR/AR)