Press Release

VIS Reaffirms Entity Ratings of Bunny's Limited

Karachi, April 06, 2023: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Bunny’s Limited (BL) at ‘A-/A-2’ (Single A Minus/A-Two). The medium to long-term rating of ‘A-’ denotes good credit quality coupled with adequate protection factors. Moreover, risk factors may vary with possible changes in the economy. The short-term rating of ‘A-2’ denotes good certainty of timely payment coupled with sound company fundamentals and liquidity factors. The previous rating action was announced on February 01, 2022.
The ratings assigned to BL take into account the company’s moderate business risk profile owing to presence in fast moving consumer goods market and largely established brand name. BL is selling daily use bakery products in Lahore and central Punjab and reportedly has over 40% market share. The overall sales to corporate sector is around 20%. BL is currently manufacturing more than 125 different products related to bakery and snacks division. To cater to the increasing demand, BL has installed new bun/burger line. The management plans to introduce couple of new products during the current year. The automation process has reduced waste, thereby improved operational efficiencies.
The ratings incorporate growth in topline on the back of volumetric increase and higher prices. The gross margins decreased during FY22 mainly due to increase in fuel & power and higher raw material related cost. Nevertheless, gross margins increased in HY23 mainly on account of improving operational efficiency. However, net margins decreased mainly due to increase in financial charges. The ratings derive comfort from projected growth in revenues driven by increasing demand and higher capacities. Meanwhile, leverage and coverages remained adequate. The ratings will remain dependent on managing the net margins in the wake of increasing operating and financial costs, improving liquidity ratios and maintaining capitalization indicators at comfortable levels.
For further information on this rating announcement, please contact Mr. Hasan Rashid at 042-35723411-13 and/or the undersigned at 021-35311861-66 (Ext. 207) or email at

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 2023 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .