Mayora Allocates $61 Million for Share Buyback Amid Market Volatility

JAKARTA, investortrust.id – Indonesian consumer goods giant PT Mayora Indah Tbk has launched a share buyback program worth Rp 1 trillion, or $61 million, as part of its strategy to navigate recent stock market volatility. The program will run for three months and is fully funded from the company’s internal cash reserves.

In an official disclosure to the Indonesia Stock Exchange on Wednesday, March 26, 2025, Mayora Indah, listed under the ticker code MYOR, stated that the buyback will reduce the company’s assets and equity by a maximum of Rp 1 trillion, or approximately $63 million.

Mayora emphasized that using internal funds for the buyback will not incur additional financing costs or impact the company’s operations. “The buyback will not materially affect our business performance or revenue, as retained earnings and cash flow remain sufficient to support the program,” the company noted in the statement.

The announcement comes on the heels of a reported drop in net profit attributable to the parent entity in 2024, which fell to Rp 3 trillion, down from Rp 3.19 trillion in the previous year. Earnings per share also declined, from Rp 143 to Rp 134.

This profit dip stands in contrast to a significant increase in net sales, which surged from Rp 31.48 trillion to Rp 36.07 trillion. The decline in net income was primarily attributed to a steeper rise in the cost of goods sold compared to sales growth, leading to a contraction in gross profit from Rp 8.40 trillion to Rp 8.30 trillion.

In addition, the company recorded a rise in selling expenses from Rp 3.35 trillion to Rp 3.52 trillion, and general and administrative expenses climbed from Rp 750.50 billion to Rp 857.91 billion. These increases pushed operating profit down from Rp 4.29 trillion to Rp 3.91 trillion.