PACRA Assigns Preliminary Ratings to Ismail Industries Amid Expansion Plans

Karachi: Ismail Industries Limited has been assigned preliminary ratings by PACRA, reflecting its strategic growth and financial performance. The company, known for its brands including Candyland and Bisconni, has a stable outlook with long-term and short-term ratings of AA- and A1, respectively. This move comes as Ismail Industries plans to issue a new PKR 8 billion sukuk to manage its working capital requirements.

According to a statement by The Pakistan Credit Rating Agency Limited, the company is expanding its operations with a notable focus on both domestic and export sales, accounting for 55% and 45% of total revenue, respectively. A significant development is the establishment of a new Bisconni subsidiary in Abu Dhabi, which involves an investment of up to $10 million. This initiative, along with the introduction of new products, is expected to drive revenue growth.

Ismail Industries’ diversified revenue streams stem from its well-established brands and strategic investments in subsidiaries and associates. The company holds substantial stakes in Hudson Pharma and Ismail Resin, and is associated with entities like Bank of Khyber and Innovita Nutrition. This diversification supports its strong credit profile and financial stability.

The company’s improved financial performance is attributed to enhanced working capital management and stable cash flows. Despite rising financial costs, Ismail Industries has maintained profitability through efficient inventory management and product innovation, targeting premium markets to mitigate industry risks.

The issuance of the new sukuk is set to replace a previously issued PKR 5 billion sukuk, due for redemption in February 2025. The ratings remain contingent on the company’s ability to sustain revenue growth, maintain margins, and manage debt prudently, underscoring the importance of brand reputation and disciplined financial management.

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