Lahore, October 20, 2021 (PPI-OT):The ratings take comfort from CCL Pharmaceuticals Pvt. Ltd (herein referred as “CCL” or the “Company”), reputable profile in pharmaceutical segment of Pakistan with a legacy built over 50 years and operations in more than 22 countries worldwide. Product portfolio of the Company is divided into two major domains, Pharmaceuticals and Consumer Health Care. CCL’s top 5 products include major brands such as, Sita Met, Pulmonol, Maxflow, Paraxyl CR and Orinase Met, these contribute approx. 45% in total revenue. CCL has state of the art GMP compliant manufacturing facility which is able to produce dry powder, liquid orals, solid orals, liquid injectable, powder injectable.
Major capital expenditure is underway to upgrade manufacturing facility for PICs compliant which is a higher drugs compliance certification thus CCL will become one of the few PICs compliant pharmaceutical companies in Pakistan. Sponsors have decades of experience in Pharmaceutical business with well-defined vision to capitalize growth trajectory. CCL is classified among country’s top 20 pharmaceuticals and recognized as one of the fastest growing Company.
In FY 2020-21, CCL was the fastest growing Company amongst the top 25 Pharmaceuticals Companies. The company is taking cognizance of corporate governance structure and formulated various committees at board and management level. The Company is led by professional management which includes highly qualified professionals with vast and diversified experience at senior management level in pharmaceutical industry and multinational organizations. The oversight role is played by the sponsoring shareholders with collaboration of Independent advisors on the board of directors.
The operations of the Company benefited with sound system of internal controls implemented across the organization. The assigned ratings of the Company take comfort from sticky demand of product and strong market share in Anti-Diabetic, Anti-Depressants and Expectorants. Financial profile of the Company is considered strong with healthy coverages, upright working capital management and comfortable cashflows. Capital structure is modestly leveraged to support BMR (PIC/S Compliant) and capacity expansions.
Borrowings are comprising mix of short term and long term with significant portfolio of fixed rate instruments including Export Refinance Facilities, LTFF Facility availed for BMR and SBP Salaries and Wages Refinance Scheme. Going forward the Company will be benefited from (a) more formal group structure with incorporation of CCL Holdings (b) increase of its market share with new molecules and through brand acquisitions (c) exploring new export destinations after PIC/S compliance. The ratings are dependent on upheld sustainable profits and market share while retaining sufficient cash flows and coverages. However, adherence to maintain its debt metrics at an adequate level is a prerequisite.
For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com