Press Release

VIS Reaffirms Entity Ratings of Golden Harvest Foods (Private) Limited

Karachi, December 8, 2023: VIS Credit Rating Company Limited has reaffirmed the entity ratings of Golden Harvest Foods (Private) Limited at ‘BBB+/A-2’ (Triple B Plus /A-Two). The long-term rating of ‘BBB+’ signifies adequate credit quality with reasonable and sufficient protection factors. Risk factors are considered variable if changes occur in the economy. Short term rating of ‘A-2’ denotes good certainty of timely payments coupled with sound liquidity and company fundamentals. Outlook on the assigned ratings is ‘Stable’. Previous rating action was announced on November 28, 2022.
GHFL, established in 2000, is owned by the Ghulam Hussain Family. GHFL primarily operates in the realm of manufacturing and trading bakery products and frozen ready-to-eat meals. Under a familial agreement, GHFL is duly authorized to produce and distribute a comprehensive range of bakery products and ready-to-eat frozen meals, under the renowned franchise 'Dawn Bread,' within the geographical boundaries of Sindh and Baluchistan for the domestic market and operates under the brand name of ‘Dawn Bread’ and ‘Mezban’ internationally.
The assigned ratings reflect the market position of Dawn Bread's established franchise in the Pakistani market. Provision of consistent quality products and fleet size of 200+ vehicles for distribution across Karachi provides competitive advantage to the company. The Company also possess a sizable export clientele, which contribute a major chunk of the Company’s topline. While country-wise concentration is on the higher side; management plans to diversify geographic presence. The company has embarked upon expanding its paratha export sales particularly in the European market. New B2B market segment is being explored in domestic market while development of new products such as bread crumbs, dry seasoning, and cake premixes continues.
Assessment of financial risk profile take into account considerable growth in topline emanating majorly from export sales. Gross and net margins improved, driven primarily by favorable foreign exchange impact and cost rationalization. Cash flow coverages remained adequate. While gearing remained moderately high, the company has no plans to mobilize long-term financing in the medium term, the management is projecting gradual decrease in leverage indicators, going forward. Meanwhile, the ratings are constrained by room for improvement in the corporate governance framework and dependent upon sustained market positioning, margins and capitalization indicators.
For further information on this rating announcement, please contact Mr. Maimoon Rasheed at 042-35723411-12 (8008) or the undersigned (Ext. 201) at 021-35311861-64 or email at
Sara Ahmed

Applicable Rating Criteria: Industrial Corporates (May 2023)
VIS Issue/Issuer Rating Scale

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