Rating Release
Agusto & Co. upgrades the rating assigned to Sundry Foods Limited to “A-” with a stable outlook
The rating expires on 30-06-23
Agusto & Co. upgrades the rating assigned to Sundry Foods Limited (“Sundry Foods”, “SFL” or “the Company”) to “A-”. The rating upgrade reflects the Company’s good profitability, moderate leverage, adequate working capital and as well as good and sustainable cash flow position which is supported by the Company’s favourable trade terms with its customers and creditors. The rating is further underlined by Sundry Foods’ good market position as a leading player in the Quick Service Restaurant (QSR) Industry as well as its stable and experienced management team. These strengths are partially offset by the frail macro-economic environment evidenced by the declining consumer purchasing power, rising inflation and the intense competition in the QSR Industry as well as the Company’s corporate governance structure which requires strengthening.
Sundry Foods Limited is a major player in the Quick Service Restaurant (QSR) Industry in Nigeria which operates under the brand names – Kilimanjaro, Pizza Jungle, Kiligrill and Nibbles Creamery. The Company also operates bakeries and provides catering services to corporate entities and for private events. Since its inception in 2003, Sundry Foods Limited has maintained a steady growth and has over a hundred outlets consisting of restaurants, bakeries, catering in various locations across 14 states in Nigeria.
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.
