PACRA Maintains Entity Ratings of Waheed Hafeez Ghee Industries (Pvt.) Limited

The ratings reflect Waheed Hafeez Ghee Industries (Pvt.) Limited’s or ("the Company") established market presence and its strategic association with Waheed Group of Companies ("the Group"). The Group has established a leading position in the edible oil and ghee sector, comprising its specific markets. There are five principal operating companies, in this group: Waheed Hafeez Ghee Industries (Pvt.) Ltd., Khadija Edible Oil Refinery (Pvt.) Ltd., Neelum Oil& Ghee Industries (Pvt.) Ltd., AK Oil and Ghee Industry (Pvt) Ltd. and Lal Oil & Ghee Mills (Pvt.) Ltd, with a combined installed production capacity exceeding 850,000 million tons per annum, providing meaningful operational synergies and scale advantages.
During FY25, the Company maintains a steady operational profile despite a slight 9.7% contraction in turnover, reporting net revenue of PKR 6,123 million (FY24: PKR 6,778 million). Revenues are supported by the sustained brand equity of the Company's flagship products, most notably Fauji Supreme, which remains the primary revenue driver, followed by other regional brands like Fauji Kohinoor, Zeenat, Islamabad, Perlli, and Phool. The Company continues to leverage its strong distribution network to maintain a deep market footprint across Northern and Central Pakistan, ensuring stable demand. Profitability metrics showed resilience, with the gross margin expanding to 8% (FY24: 6%) and the net profit margin rising to 3.7% (FY24: 2.1%). This improvement is primarily driven by disciplined cost management and the stabilization of raw material procurement costs. The Company’s financial risk profile remains well-managed, supported by a conservative capital structure and disciplined liquidity management. Total borrowings stood at PKR 725 million as of FY25 (FY24: PKR 458 million), comprising entirely short-term facilities utilized for working capital and import financing. The leverage ratio stood at 25.2% (FY24: 19.2%), primarily to support expanded import volumes rather than any structural increase in financial risk. EBITDA strengthened to PKR 419 million (FY24: PKR 341 million), while finance costs remained negligible, reinforcing the Company's strong debt-servicing capacity. The Company continues to benefit from a centralized finance function that ensures rigorous oversight across Group entities.
Looking ahead, the ratings remain sensitive to the Company's ability to sustain its market share and margins in a volatile commodity environment. Brand reputation and customer retention support the ratings. However, strategic backing from the Waheed Group and the prospective institutionalization of board committees to bolster governance remain pivotal credit factors.

About the Entity
Waheed Hafeez Ghee Industries (Pvt.) Limited was incorporated in September 1993 as a Private Limited Company. The Company is primarily engaged in the production and sale of refined, branded cooking oil and ghee at its manufacturing facility located in Hattar, KPK, which has a production capacity of 350 MT per day. The Company’s majority ownership resides with family sponsors, with Mr. Abdul Waheed holding approximately 90% and Ms. Rubina Kausar holding approximately 10%. The CEO, Mr. Abdul Waheed, is supported by an experienced management team.