Organic Meat : Material Information

12/19/22 at 11:45 am prFile VIS Credit Rating Company Limited. Press Release: VIS Credit Rating Company Limited has maintained ratings for The Organic Meat Company Limited Karachi (December 15, 2022): VIS Credit Rating Company Limited, (VIS), has maintained entity ratings for The Organic Meat Company Limited, (TOMCL), at 'A/A-2 (Single-A Minus/A-2). A- is a rating that indicates good credit quality and adequate protection. Risk factors can change with changes in the economy. A rating of 'A-2,' short-term, indicates high certainty in timely payments and sound liquidity. The outlook on assigned ratings has changed from 'Stable to 'Positive. The prior rating action was made on December 7, 2021. TOMCL's market position as the main player in the meat export market takes into consideration its ability to slaughter and package meat, have the highest receipts for halal meat, be the only formal meat processor, and have access to 16 countries. Ratings are based on the company's leaner business model than its peers, which allows for rationalization of operating costs and the majority of exports via sea route to gulf nations. This provides an additional advantage in terms freight charges when compared with peers who use air cargo facility. A 30% equity injection proposal from a prominent Saudi company is expected to be realized during the current year. This will be followed by numerous initiatives by the company to increase market penetration, product line expansion and new product line development. The goal of these initiatives is to export cooked meat products into the Chinese market. The financial risk profile includes revenue growth over the next year and the subsequent translation into profitability metrics. As expected, the scale of operations increased and the liquidity position improved. The financial risk profile is considered sound if there is sufficient cash flow generation to cover outstanding liabilities. Ratings continue to consider a conservative capital structure that relies on borrowings and a low reliance on borrowings. The subsequent rise in borrowings to finance capital expenditure and increased working capital requirements during review was offset by substantial growth in equity base over the current year. Ratings also consider the Corporate Governance framework, which is indicative of the company's operational status as it is listed. Ratings are dependent on maintaining margins, realizing projected targets, incremental cashflow generation from capital expenditure, maintenance of gearing, and leverage indicators, and the maintenance of their ratings. Please contact Ms. MahamQasim (042 35723411- 13 Ext. 8010) or the undersigned at 021-3531186166 (Ext. This rating/ranking does not constitute a recommendation to sell or buy securities. Copyright 2022 VIS Credit Rating Company Limited. All rights reserved. Disclaimer Organic Meat Company Ltd. published the content on December 19, 2022. It is solely responsible. Duration: Auto. 2 months 3 months 6 month 9 months 1 year 2years 5 years 10 years max. Mean consensus - Number Of Analysts 0 Last Closing Price 21,53 Average Target Price Spread / Average Target
Nihal F. Cassim Independent Chairman