Karachi, VIS Credit Rating Company Limited has reaffirmed Dairyland (Private) Limited's entity ratings at 'A-/A-2', indicating good credit quality, sound liquidity, and a positive outlook. This reaffirmation, following the previous rating action on June 10, 2022, reflects the company's stable financial and market position.

According to VIS Credit Rating Company Limited, Dairyland, part of the Akhtar Group of Companies and operating under the 'Dayfresh' brand, specializes in the production, manufacturing, and distribution of dairy products, particularly processed milk. The dairy market, characterized by seasonal fluctuations, has shown resilience with stable demand influenced by urbanization, growing middle-class, and favorable regulatory policies. VIS notes that Dairyland has consistently grown its sales volume and prices, effectively managing market demand through the expansion of its milking herd. Despite strong competition, the company's gross margins have remained stable, with consumer price adjustments absorbing cost increases. Dairyland anticipates growth driven by the inelastic nature of milk demand, heightened awareness of milk hygiene, and increasing urbanization. Financial assessments show improvements in cash flows and coverage, with a strengthened equity base supported by sponsor contributions and profit retention. The company's future performance is expected to hinge on sales growth, profitability, margin maintenance, and effective management of its capital structure.