Dufil Prima Foods Plc.

Image placeholder
Dufil Prima Foods Plc (2021-11)
  • Dufil Prima Foods Plc.
  • Year : Nov 2021
3 Tokens
USD 300.00
Summary

Earnings are a ratings strength. Dufil has reported strong revenue progression over the years, with 8% growth in earnings in FY20 despite COVID 19 pandemic crisis and other related issues. Growth was underpinned by slight increase in price and higher traded volume, reflecting the non-discretionary nature of its products. Impacted by persistent rise in international price of inputs (mainly wheat) and the adverse impact of Naira devaluation, the EBITDA margin has generally decreased through the cycle, trending at around 12% in FY18-20, compared to the high of 20% reported in FY17. GCR expects the margin to remain in this range over the rating outlook as economic uncertainties persist.

Additional Information

The Stable Outlook reflects GCR’s view that Dufil leading position within the noodles market and completed capacity expansion will support strong earnings growth over the medium term, and therefore support improvement in gearing and liquidity metrics. Liquidity shortfall is supported by the strong access diverse funding sources. Positive rating action could emanate from successful completion of ongoing projects which translates into substantial earnings growth and sustainable higher cash flows.

Related Publication

Flour Mills of Nigeria Plc (2019-01)

A Credit Rating report is a research report providing detailed analysis utilised by GCR in the accordance of a Credit Rating.

Nigeria’s Capital Markets: Robust Corporate Debt Issuance Expected Over 2021

GCR expects corporate debt issuance in Nigeria to remain robust throughout 2021. Debt capital market activity in Nigeria has increased significantl...

Credit Spotlight: Environmental, Social and Governance Considerations and Issuer Credit Ratings

GCR’s ratings factor in a myriad of environmental, social and governance (ESG) considerations into issuer credit ratings. The below highlight...

Available Purchase Options: