JCR-VIS Credit Rating Company Limited (JCR-VIS) has upgraded the medium to long term rating of the Sukuk issue of Rs. 950m of Engro Foods Limited (EFoods) to ‘A+’ (Single A Plus) from ‘A’ (Single A). Outlook on the assigned rating is ‘Stable.’
The rating incorporates the strong growth potential in the sector in which EFoods operates; the company has posted considerable growth in sales since inception. Within the sales mix, there is strong reliance on a single product, namely, Tarang. The dairy drinking segment, contributes around one-third to total sales. Within this segment, the company has launched ‘Dairy Omung’, which is positioned at a relatively lower sales price point vis-à-vis that of its established product in the segment i.e. ‘Olpers’. (Press Release)