Rating Release

Agusto & Co. hereby assigns a “Bbb+” rating to Saro Lifecare Limited with a stable outlook

The rating expires on 30-06-23

Agusto & Co. hereby assigns a “Bbb+” rating to Saro Lifecare Limited (“Saro Lifecare”, “SLC” or “the Company”). The rating is reflective of the Company’s satisfactory profitability, as well as its adequate working capital and low leverage positions. Agusto & Co has also taken into consideration SLC’s expanding local manufacturing capacity that has helped to build some resilience against supply chain and foreign exchange risks associated with sourcing raw materials and finished products abroad. These rating positives are however constrained by the Company’s concentrated ownership structure as well as concerns over continuous margin decrease across its product portfolio owing to intensifying cost pressures and subdued demand that has characterised the business climate.

Saro Lifecare Limited is an indigenous player in the home and personal care segments of the country’s fast moving consumer goods (FMCG) sector and a member of the Saroafrica Limited (“Saro Group”) – a diversified company with business interests spanning the crop protection, agro-processing, oil palm, ethanol and consumer goods industries. The Company commenced operations in October 2007 after it acquired the home and personal care division of Chemicals & Allied Products Plc (CAP Plc), which gave it exclusive rights over the Purit Antiseptic Liquid, Carat Medicated Soap, Safecut Aftershave and Dayspring Liquid Detergent amongst other brands. SLC later inherited the Sniper brand from a sister company. Saro Lifecare is yet to achieve considerable scale in the personal care market. Hence, the Company’s operations are skewed toward the production and marketing of insecticides under its Sniper and Nopest brands.

The opinions expressed in this rating release do not represent investment or other advice and should therefore not be construed as such. Visit www.agusto.com for further information.