Press Release
VIS Reaffirms Entity Rating of Premier Sales (Private) Limited
Karachi, October 14, 2025: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Premier Sales (Private) Limited (‘PSL’ or ‘the Company’) at A/A1’ (‘Single A /A One). Medium to long-term rating of ‘A’ reflects good credit quality; protection factors are adequate. Risk factors may vary with possible changes in the economy. Short-term rating of ‘A1’ indicates strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on September 11, 2024.
Premier Sales (Private) Limited (PSPL), incorporated in 2020, is a nationwide trading and distribution company headquartered in Karachi. The Company operates 71 branches across 62 towns, supported by extensive warehousing and logistics facilities. Its portfolio spans across pharmaceuticals, FMCG, cosmetics, beverages, lubricants, consumer electronics, and paints products. PSPL is part of the Premier Group of Companies, which has a diversified presence in textiles, pharmaceuticals, and household products, maintaining a strong position in Pakistan’s industrial and consumer markets.
The assigned ratings of Premier Sales (Private) Limited reflect its established position in the domestic distribution sector, supported by a broad customer base and long-standing relationships with key principals. Revenue growth remained robust during the review period, supported by higher sales volumes and an expanded distribution network. The sales mix continues to be dominated by pharmaceuticals, followed by FMCG. The company’s risk profile is mitigated through the addition of new principals during the year.
Profitability improved marginally, with margins benefiting from higher sales volumes. However, operating costs remained under pressure from elevated purchase costs and higher wage levels, while distribution and selling expenses also increased in line with network expansion. Finance costs remained elevated, reflecting reliance on short-term borrowings for financing inventory. Despite these pressures, the Company maintained profitability. Equity was further strengthened through profit retention. Liquidity and debt coverage indicators are considered adequate, supported by improvement in funds from operations and increased debt servicing coverage during the period.
Sponsor support continues to provide comfort in meeting working capital requirements and is expected to remain available going forward. The ratings remain sensitive to the Company’s ability to sustain profitability, generate stronger cash flows, and manage leverage while preserving adequate liquidity.
For further information on this ratings announcement, please contact on 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