PACRA Maintains Entity Ratings of Ismail Industries Limited

Lahore, June 29, 2018 (PPI-OT):Ismail Industries Limited (IIL) is one of the leading confectionary, snacks and biscuit manufacturing company. The ratings reflect IIL’s strong presence in the confectionary industry in particular and in packaged food industry in general. Growing middle class coupled with company’s expansion related investments led to doubling of revenues in last 5 years. Ratings also take comfort from the company’s related diversification of plastic film manufacturing units which itself is one of the leading plastic film manufacturing unit.

IIL has a diverse product range delivered through a strong deep rooted distribution network all over the country. Bisconni – Biscuit Brand, is now the leading food segment of the company with 35% share in total revenues closely followed by Candyland with 30% share. In 9MFY18, the company increased its revenue by 25% YoY while improving its gross margins. Better profitability coupled with lower finance cost led to better coverages YoY. The ratings also incorporate the company’s strategic investment in The Bank of Khyber. IIL has a leveraged capital structure due to procurement of expansion related debt.

The ratings are dependent on upholding of the Company’s business as well as financial risk profile. The company plans to further increase its product lines by introducing new products to the market. Prudent management of this expansion related debt to meet its financial obligations will remain a key factor for going forward any rating movement.

For more information, contact:
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com

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