Rating Release

Agusto & Co. affirms the “A+” rating assigned to Food Concepts Plc With a Stable Outlook

The rating expires on 30-06-23

Agusto & Co. affirms the “A+” rating assigned to Food Concepts Plc (“Food Concepts”, “FC” or “the Company”) reflecting its low leverage position, good cash flow profile and dominant position in the quick service restaurant segment in the major cities in the country. The rating is further upheld by adequate working capital, which reflects the favourable trade terms the Company enjoys with both its customers and suppliers as well as the stable, qualified and experienced management team. Nonetheless, the rating is tempered by the Company’s susceptibility to adverse economic cycles as reflected in its current level of operating margin.

Food Concepts Plc is a key player in the QSR industry in Nigeria and owns the Chicken Republic and PieXpress franchises. The Company, which commenced operations as a producer of ice cream and pastries in 2001, has over 248 company-owned and 30 franchised retail stores across the major cities in the country as at 31 July 2022.

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.