Rating Release

Agusto & Co. hereby affirms the “Bbb+” rating assigned to Saro Lifecare Limited

The rating expires on 30 June 2024.

Agusto & Co. hereby affirms the “Bbb+” rating assigned to Saro Lifecare Limited (“Saro Lifecare”, “SLC” or “the Company”). The rating reflects the Company’s satisfactory profitability, bolstered by its strong brand equity in the in-home pest control sector and extensive distribution network, as well as its adequate working capital and low leverage position. The rating is strengthened by the Company’s expanding local manufacturing capacity, which has enhanced its resilience against supply chain and foreign exchange risks associated with raw materials and finished product imports. However, the rating is moderated by SLC’s concentrated ownership structure and limited ability to pass on escalating costs to consumers owing to the adverse effects of the weak macroeconomic environment on consumer discretionary spending.

Saro Lifecare Limited is an indigenous player in Nigeria’s fast-moving consumer goods (FMCG) sector. The Company is a member of the Saroafrica Limited (“Saro Group” or “the Group”), a diversified corporation with business interests in crop protection, agro-processing, oil palm, ethanol and personal care goods industries. Incorporated in October 2007, SLC specialises in the manufacturing and marketing of in-home pest control and personal care products under six brands, including Sniper, Nopest, Purit, Carat, Safecut and Diva’s Secret. The Company sells its products through an extensive network of distributors across Nigeria and also leverages the Saro Group’s crop protection distribution channels to effectively reach customers in remote locations.

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