Press Release

VIS Reaffirms Entity Ratings of Olympia Oils (Pvt.) Limited

Karachi, May 18, 2026: VIS Credit Rating Company Limited (‘VIS’) reaffirms Entity Ratings of Olympia Oils (Pvt) Limited (‘OOL or ‘the Company’) at 'A-/A2' (‘Single A Minus’/’A Two’). Medium to long term rating of 'A-' indicates good credit quality; protection factors are adequate. Risk factors may vary with possible changes in the economy. Short term rating of 'A2' indicates good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned ratings remains ‘Stable.’ Previous rating action was announced on March 26, 2025.

Assigned ratings take into account Olympia Oil (Pvt.) Limited’s (‘OOL’ or ‘the Company’)’s association with the Olympia Group, a family-owned conglomerate led by the Monnoo family, which provides strategic and operational support through vertical integration, access to key resources, and a stable supply chain, supported by its diversified presence across multiple sectors.

Performance improved following the lifting of the GMO soybean seed ban, driving topline growth that continued into 1HFY26. Gross margins contracted in FY25 due to lower average selling prices but recovered in 1HFY26, while net margins strengthened on the back of reduced finance costs and lower debt. Liquidity, debt coverage, and capitalization indicators have also improved, aided by reduced short-term borrowings and stronger offtake.

Going forward, geopolitical tensions in the Middle East and rising palm oil prices may pressure profitability. Despite recent improvements, ratings remain constrained by the inherent risks of the edible oil industry—heavy reliance on imports, exposure to commodity and currency volatility, regulatory uncertainty, and intense competition. Sustaining debt coverage, liquidity, and capitalization will be critical to ratings stability.

For further information on this rating 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

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright May 18, 2026 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.