Press Release

VIS Reaffirms Entity Ratings of Olympia Oils (Pvt.) Limited

Karachi, March 26, 2025: VIS Credit Rating Company Limited (‘VIS’) reaffirms Entity Ratings of Olympia Oils (Pvt) Limited (‘OOL or ‘the Company’) at 'A-/A2' (‘Single A Minus’/’A Two’). Medium to long term rating of 'A-' indicates good credit quality; protection factors are adequate. Risk factors may vary with possible changes in the economy. Short term rating of 'A2' indicates good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned ratings remains ‘Stable.’ Previous rating action was announced on December 06, 2023.

The ratings reflect OOL’s position as part of the well-established Monnoo Group, which provides financial and operational support. The Company benefits from vertical integration within the group, ensuring easy access to soda ash and other resources supplementary for its production process.

The ratings also incorporate the competitive nature of the edible oil industry, characterized by price volatility, import dependency, and regulatory uncertainties. OOL’s business profile was influenced by industry-wide challenges, particularly regulatory restrictions on the import of genetically modified soybean (GMO), which significantly impacted production and sales in FY23 and FY24. The Company has attempted to mitigate the impact of the ban through product diversification, though the transition has only partially offset volume losses. However, the recent lifting of the ban is expected to support operational and financial recovery going forward.

Financial performance in the review period was affected by revenue contraction and margin pressures due to lower production activity. While profitability weakened, sponsor support has helped manage liquidity constraints. The Company’s capital structure remains moderately leveraged, supported by equity retention and funding from sponsors.

Going forward, ratings remain sensitive to sustained improvement in capacity utilization, profitability recovery post-regulatory changes, and improvement in liquidity and capitalization indicators.

For further information on this rating announcement, please contact at 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

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 2025 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .