Press Release

VIS Reaffirms Entity Ratings of Garibsons (Private) Limited

Karachi, March 19, 2025: VIS Credit Rating Company Limited (‘VIS’) reaffirms Entity Ratings of Garibsons (Private) Limited (‘GSPL’ or ‘the Company’) at 'A/A2' (‘Single A’/’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 March 01, 2024.

The assigned rating reflects the Company's established position in the rice export industry. It has maintained stable operational performance, benefiting from an extensive distribution network and strong brand recognition in both global and domestic markets.

Business risk remains high due to exposure to raw material availability, crop size variations, price volatility, currency fluctuations, and changes in global trade policies. However, the Company's ability to sustain export volumes, supported by sufficient production capacity, helps mitigate these risks. The lifting of trade restrictions by key competitors may exert pricing pressure in the near term, though demand for high-quality rice continues to support revenue stability.

On the financial front, the Company has demonstrated consistent revenue growth, primarily driven by higher export volumes. While profitability margins remain under pressure due to inventory losses and financial charges, they are at manageable levels. Liquidity is supported by efficient working capital management, ensuring stable cash flow generation.

The capital structure remains moderately leveraged, with short-term borrowings constituting the majority of the debt profile. These borrowings are primarily seasonal, aligned with raw material procurement requirements. Gearing levels have remained within acceptable limits, supported by profit retention. Although finance costs increased due to restrictive monetary conditions, the Company's debt coverage metrics remain adequate.

Going forward, fund flows are expected to improve following a reduction in the monetary policy rate amid improving macroeconomic conditions. Maintaining financial discipline, sustaining market share, and managing external risks will be key factors influencing the rating outlook.

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 .