Press Release
VIS Reaffirms Entity Ratings to Sunridge Foods (Private) Limited
Karachi, October 30, 2025: VIS Credit Rating Company Limited (VIS) has reaffirmed entity ratings of Sunridge Food (Private) Limited (‘SFPL’ or ‘the Company’) at ‘BBB+/A3’ (Triple B Plus/A Three). The medium to long-term rating of ‘BBB+’ denotes adequate credit quality; protection factors are reasonable and sufficient. Risk factors are considered variable if changes occur in the economy. The short-term rating of ‘A3’ denotes fair likelihood of timely repayment of short-term debt obligations, with satisfactory liquidity factors. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on September 10, 2024.
SFPL is a wholly-owned subsidiary of Unity Foods Limited. The Company primarily focuses on processing wheat, flour, and rice, with flour being its main product. It also deals in sugar, salt, lentils, and pulses, with the majority of its sales occurring in the local market. The Company sells its products under the brand name ‘Sunridge’, directly to retailers, restaurants, hotels and a vast network of distributors spread across the country. SFPL manages three flour processing facilities and a rice-processing unit in the provinces of Sindh and Punjab. Additionally, SFPL possesses storage facilities in Punjab and Sindh.
Wheat production in Pakistan registered robust growth in FY24, aided by post-flood recovery, improved input availability, and expanded cultivated area. Nonetheless, the domestic market remained volatile amid supply chain inefficiencies and inconsistent policy interventions. The convergence of a bumper crop, government imports, and lower international prices led to a temporary oversupply, compelling farmers to sell below cost and constraining liquidity. With limited capacity to reinvest in timely input application and declining water reservoir levels, wheat output in FY25 is projected to fall short of target levels, heightening risks for the broader agricultural sector.
The Company posted topline growth in FY24, supported by higher volumes and price increases; however, profitability weakened due to margin compression from elevated operating and finance costs. In 9MFY25, profitability recovered on account of easing raw material prices and cost rationalization leading to improved margins and coverage indicators. Liquidity remained under pressure but showed improvement, while rising gearing continued to constrain capitalization. Going forward, amid sector headwinds, improvement in liquidity, profitability and capitalization profile remains important for rating.
For further information on this rating announcement, please contact the undersigned at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria: Corporates
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf