Press Release
VIS Maintains Entity Ratings of Bunny’s Limited
Karachi, April 14, 2026: VIS Credit Rating Company Limited (VIS) has maintained the entity ratings of Bunny’s Limited (‘BL’ or ‘the Company’) at ‘A-/A2’ (Single A Minus/A Two). The medium- to long-term rating of ‘A-’ indicates good credit quality; protection factors are adequate. Risk factors may vary with changes in economic conditions. The short-term rating of ‘A2’ indicates a good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned rating has been revised from ‘Negative’ to ‘Stable’. Previous rating action was announced on December 31, 2024.
Incorporated in 1964, BL is a public listed company principally engaged in the manufacturing and sale of bakery and food products. The Company markets its products under the well-established ‘Bunny’s’ brand and offers a diversified portfolio comprising bread, buns, rusk, and other bakery products, along with snacks. The Company caters to retail consumers as well as institutional customers through an established distribution network.
The assigned ratings reflect the Company’s established brand presence in Pakistan’s organized bakery segment and the relatively stable demand dynamics of bread and related bakery products. During FY25, production capacity expanded in the bakery division with the addition of a new bread production line at Islamabad, while the Company also broadened its snacks portfolio through the introduction of additional SKUs. Furthermore, enhanced marketing efforts and expansion into new markets have supported the Company’s outreach and sales growth.
Following the losses reported in FY24, primarily due to margin compression and higher financial charges, the Company’s profitability profile improved in FY25. Net sales increased in FY25 and 1HFY26, primarily driven by higher sales volumes. Moreover, lower procurement price of raw material mainly flour led to higher margins during FY25 and 1HFY26. With lower overall borrowings and higher equity base, leverage indicators improved. The improvement in financial indicators is expected to sustain given expansion in outreach, largely maintained prices and lower interest rate scenario; outlook on the assigned rating is therefore revised from ‘negative’ to ‘stable’. Going forward, ratings will remain sensitive to prudent debt management along with effective execution of enhancement in operational efficiencies and maintenance of improving trend in financial metrics.
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk
Applicable Rating Criteria:
Industrial Corporates
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf