Press Release

VIS Maintains Entity Ratings of Dairyland (Private) Limited

Karachi, June 10, 2022: VIS Credit Rating Company Limited (VIS) has maintained the entity ratings of Dairyland (Private) Limited (DPL) at ‘A-/A-2’ (Single A Minus/A - Two). The long-term rating of ‘A-’ signifies good credit quality and adequate protection factors. Risk factors may vary with possible changes in the economy. Short term rating of ‘A-2’ depicts good certainty of timely payment. Liquidity factors and company fundamentals are sound with good access to capital markets. Risk factors are small. Outlook on the assigned ratings has been revised to ‘positive’. Previous rating action was announced on February 19, 2021.

Dairyland (Private) Limited (DPL) is engaged in manufacturing and sales of dairy products, with a focus on processed milk. The company is a part of Akhtar Group of Companies with majority shareholding vested with Akhtar Textile (Pvt.) Limited. The company has developed an end-to-end value chain ranging from its own farm containing livestock for milk production to the final packaged products for the end-consumer. DPL is present under the brand name of ‘Dayfresh’ with a product portfolio encompassing Homogenized & Pasteurized milk, UHT Milk, Flavored Milk, Tea Whitener, Yogurt, Raita, cheese and eggs. Further additions include a line of flavored drinking yogurt.

The revision in the outlook takes into account an improvement in financial risk as well as manageable business risk factors. The topline registered growth on a timeline basis, on the back of higher product prices. The Company expects to register growth on the back of the inelastic nature of demand, significant untapped market potential in Pakistan’s dairy industry for packaged milk, increasing awareness amongst people regarding milk hygiene and other factors such as increasing urbanization. However, competitive forces in the industry remain strong.

Margins of the company have remained consistent on a timeline basis on the back of cost control at administrative level as well as restricted finance costs due to low debt levels. Higher profitability is also reflected in cash flow coverage ratios, as the liquidity indicators remain adequate. Gearing and leverage remain manageable, while the equity base has improved as a result of profit retention and sponsor support. Going forward, an improvement in profitability and liquidity indicators of the company, while maintaining the low-debt capital structure will be considered important.

For further information on this rating announcement, please contact the undersigned at (021) 35311861-66 or email at

Sara Ahmed

VIS Entity Rating Criteria - Industrial Corporates (Aug 2021)

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 2022 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

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