Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has announced an upgrade in the entity ratings of Jazaa Global (Private) Limited, citing the company's strategic expansion toward a diversified revenue base. This move reflects Jazaa's strengthened financial profile and operational resilience, supported by a shift from reliance on a single product to a broader income stream across various segments.

Jazaa Global has shown significant growth potential, particularly in its export sales, which account for approximately 64% of its total revenue, while local sales contribute around 36%. The company's expanding operational scale is supported by sound financial management and robust liquidity, as evidenced by a 58% year-over-year growth in topline revenue, despite inflationary pressures affecting profit margins.

The company manufactures a broad portfolio of over 352 stock-keeping units (SKUs) and caters to consumers in more than 55 countries and over 100 cities within Pakistan. Its manufacturing facility in Karachi boasts an annual production capacity of 40,400 metric tons for rice and 4,000 metric tons for salt.

Rice remains the primary revenue driver, contributing 63% of total revenue, followed by Essentials, Recipe Mixes, and other product categories. Jazaa's financial risk profile is deemed sound, with moderate leverage indicators and efficiently managed working capital.

The ratings upgrade also reflects the significant industry experience and strategic foresight of Jazaa's sponsors, who remain committed to supporting the company financially if necessary. PACRA emphasized the importance of maintaining financial discipline and sufficient cash flows to sustain the company's margins and support future expansion efforts.