May 26, 2025 (MLN): Pakistan Credit Rating Agency Limited (Pacra) has maintained entity reviews of Olympia Chemicals Limited on “A” for the long term and “A1” for the short term with a stable Outlook forecast, showed the last press release from Pacra.
The company has a strong presence in the production of soft drinks (light and dense) and refined sodium bicarbonate, reflected by the robust company profile.
The assigned reviews take comfort from the consistent performance of the company, which closely matches the well -devised and careful business strategy.
The company is currently working with a total production capacity of 1,000 tons per day (TPD), including 160 TPD dedicated to food quality sodium bicarbonate.
The local SODAas market shows a duopoly, in which happy core industries have a commander around 60% market share, followed by Olympia chemicals with around 30% market share, while the remaining 10% is supplied by import.
Sapphire Chemicals, a newcomer to the SODA asset segment, has received approval from the special Economic Zone (SEZ) authority to set up a production facility, with a primary focus on focusing export markets.
The factory is expected to become operational for the next three years.
The local demand for soft drinks are closely linked to various important sectors, including the production of glass, detergents, special chemicals and water treatment.
Among this, the glass sector is the largest consumer.
During FY24, however, the glass industry experienced a modest activity, mainly due to a delay in the construction sector.
In 1HFY25, with the stabilization of macro -economic indicators characterized by a significant decrease in inflation and a reduction in the construction activity of the policy percentages, the pace has collected.
This recovery is reflected in an increase of approximately 11% in the company’s sales volumes in the same period.
The management of the company remains aimed at product diversification and has successfully dared to produce a soda-essay derivatives with added value.
This segment is gaining grip and has demonstrated strong performance and registers a double digit growth.
The group has an established business legacy, with a diversified portfolio with poultry and processed chicken, animal feed, chemical production, edible oil extraction, agriculture, fruit orchards, carpet weaves and textile production.
The company’s board consists mainly of close relatives, which points to the potential for strengthening the governance practices.
The top line of the company registered a growth of approximately 8.3% during 1HFY25, mainly driven by higher volumes and price adjustments. However, margins placed a slight dilution.
The financial risk profile of the company is considered good with comfortable coverings, cash flow and working capital management.
The capital structure is low livered and loans mainly consist of concessional long -term loans (TERF).
The assessments depend on maintained sustainable profit and market share, while sufficient cash flows and coverage are retained.
However, compliance with his debt statistics at a sufficient level is a condition.
Olympia Chemicals Limited was founded in Pakistan on January 1, 1995, as an audience that was not mentioned under the Companies Ordinance, 1984 (now The Companies Act, 2017).
The registered office of the company is located on 25-a Davis Road, Lahore and production facilities are located in Unit (I) Warcha Tehsil Quaidabad, District Khushab Warcha and Unit (II) 45 km Multan Road, Tehsil Pattoki, Kasur district.
The company is owned by the Monnoo family and the share that is the share is divided between Mr. Hamayun Monnoo (25%), Muhammad Shakil Monnoo and his family (36%) and Muhammad Khurshid Monnoo and his family (19.33%) and Muhammad Nasir Monnoo and his family (19.33%). Muhammad Shakil Monnoo is the CEO of the company.
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Posted on: 2025-05-26T14: 4:30 AM+05: 00
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