PACRA Maintains Entity Ratings of A. Rahim Foods (Private) Limited

The assigned ratings of A. Rahim Foods (Private) Limited (“A. Rahim Foods” or “the Company”) reflect the Company’s strong market positioning, supported by the established “Dawn” brand and an extensive nationwide distribution network. The Company benefits from a diversified product portfolio, broad SKU range, operational scale, and strong sponsor backing. Synergies from associated group companies enable it to effectively cater to consumers across over 150 cities in Pakistan. As a prominent player in the food processing sector, A. Rahim Foods has consistently achieved revenue growth while effectively managing market fluctuations. Operationally, the Company continues to expand its production footprint, supported by increased volumes across key product lines. From a business standpoint, the Company generates revenue from seven product segments: bread, buns, burgers, flatbread, paratha (frozen), rusk, and sweet cakes/muffins. Bread and Buns collectively constitute ~80% of total revenue. During FY25, the Company demonstrated significant 38.6% YOY growth in its top line, with revenue increasing to PKR ~16,837 million (FY24: PKR ~12,145 million). This growth was primarily driven by higher sales volumes and improved market penetration. Profitability indicators showed notable improvement, rising to PKR ~5,165 million (FY24: PKR ~2,384 million). The ongoing focus on automation and capacity optimization across its production facilities is anticipated to further strengthen margins and market share. The Company has enhanced its product portfolio with the launch of DoughStory, targeting the export market and supporting the expansion of its global footprint. Furthermore, the Dawn brand continues to operate through its Dawn Frozen Foods segment, catering to a distinct market and reinforcing overall brand equity. The Company maintains a sound liquidity profile, with FCFO rising to PKR 1,982 million (FY24: PKR 1,084 million). The Company’s financial risk profile has strengthened, with the leverage profile improving to 31.3% (FY24: 49.3%). Debt levels remain well-managed; short-term borrowings reduced to PKR ~388 million, now contributing only 17.6% to total borrowings.
The ratings are supported by A. Rahim Foods’ strong brand equity, growing revenues, and improved profitability, alongside a strengthened financial risk profile. Maintaining sound financial discipline, prudent working capital management, and adequate cash flow and coverages remains critical for the ratings.

About the Entity
A. Rahim Foods (Private) Limited was incorporated in 1987, engaged in the manufacturing of bakery and allied food products. The Company’s ownership is split between two members, Mr. Anwaar Hussain and his brother Mr. Noman Hussain. Under their able leadership, the group has transformed itself into a fast-growing business. The CEO is Mr. Anwaar Hussain. He is assisted by a group of professionals. The Company has grown into a leading player under the flagship “Dawn” brand. The production plants are located in Lahore (Kot Lakhpat) and Muridke.