Rating Release 

Agusto & Co. affirms the “A-” (long-term) and “A1” (short-term) ratings assigned to Saro Lifecare Limited, with a stable outlook. 

The rating expires on 30 June 2027.

 Agusto & Co. hereby affirms the “A-” (long-term) and “A1” (short-term) ratings assigned to Saro Lifecare Limited (“Saro Lifecare”, “SLC” or “the Company”). The affirmation reflects the Company’s resilient earnings and operating cash flow, supported by its strong market position in Nigeria’s in-home pest control segment, as well as its established brands, extensive distribution network and competitive pricing. The rating also considers SLC’s low leverage, healthy equity cushion and predominantly cash based sales model. We believe the Company’s sustained use of cost pass-through pricing, increasing localisation of production inputs and adoption of the locally produced Sniper Replacement Product (SRP) should provide additional resilience against inflationary and foreign exchange pressures while supporting earnings growth. The rating is, however, constrained by SLC’s sizeable investment in inventory, which continues to create working capital funding requirements and its concentrated ownership structure. This is in addition to concerns over the growing volume of group-level debt carried on the Company’s balance sheet, which could exert pressure on its standalone credit profile.

Saro Lifecare Limited is an indigenous Nigerian consumer goods manufacturer specialising in internal pest control and personal care products across six brands – Sniper, Nopest, Purit, Carat, Safecut and Diva’s Secret. The Company is a member of Saroafrica International Limited (“Saro Group” or “the Group”), with interests in agro-processing, crop protection and consumer goods. SLC distributes nationwide through its Direct-to-Retail (DTR) model, supported by 173 distributors and strategic partners, 90 field-level associates and about 25,000 outlets, while leveraging Saro Agrosciences Limited’s network to reach rural markets. The Company continues to localise production to reduce reliance on imported inputs, while expanding its product portfolio and distribution network.