PACRA upgrades the entity rating of PABC

June 30, 2025 (MLN): Pakistan Credit Rating Agency Limited (PACRA) has upgraded entity ratings of Pakistan Aluminium Beverage Cans Limited (PSX: PABC) at " AA-" for long term and " A1" for short term with a stable outlook forecast, the latest press release issued by PACRA showed.

PABC has positioned itself as a prominent producer of beverage cans in Pakistan.

The demand for aluminum cans is closely tied to the increasing consumption of beverages, a trend that continues to grow.

PABC operates on a B2B model, supplying aluminum cans directly to beverage manufacturers.

The high entry barriers, coupled with the time and expertise required for setting up the production plant, have reinforced the company's market position.

These factors have allowed PABC to establish a strong brand and secure a dominant market in Pakistan.

Furthermore, the company has captured a significant portion of the client base in Afghanistan and other international markets.

PABC has built a solid customer foundation and maintains a robust financial profile, minimizing credit risk to a minimal level.

The company's governance structure is robust, marked by the presence of Board committees and frequent board meetings.

In CY24, PABC reached a notable milestone by increasing its production capacity from 950 million cans per year to 1.2 billion cans per year, following the successful implementation of its capacity expansion project.

During the year, the Company produced 972 million cans, (2023: 843.403m), with an average production rate of 2,100 cans per minute (2023: 1,776 cans per minute).

This additional capacity has allowed PABC to better accommodate peak season demand.

Looking ahead, the rising trend in advanced packaging for carbonated beverages and juices is expected to further boost product demand.

The Company's financial risk profile is considered strong, supported by healthy cash flows. While maintaining the strong liquidity ratios.

In CY24, PABC experienced a 17% increase in net sales, reaching Rs23bn.

 This growth is attributed to a surge in cans sales, particularly exports and improved pricing strategies.

The increase in sales led to a 22% rise in net profits, totalling Rs6bn.

As of December 2024, the Company's equity stood at Rs16.7bn.

PABC's association with the reputable Liberty Group and Soorty Enterprises further strengthens its rating outlook.

The ratings are dependent on the Company’s ability to sustain its market position.

With the upcoming growth in firm’s business & volumes; prudent financial discipline and implementation of a stringent control environment shall remain imperative.

PABC, established in 2014 as a joint venture of Ashmore Mauritius PABC Limited and Liberty Group, started its commercial production in 2017 and eventually became a Public Listed Company in 2021 with divestment of Ashmore's shares.

Currently, the sponsors, directors, and substantial shareholders collectively own 55.62% of the shares, with Zain Ashraf Mukaty holding 20.99%,

Temor Ashraf Mukaty 17.30%, and Ahmed Ashraf Mukaty 17.30%.

Soorty Enterprises Pvt Ltd holds 20% along with Liberty Mills Limited and Libert Power Tech Limited holding respectively 1.3% and 1.6%.

Banks, DFIs, and NBFIs own 3.31%, while the general public holds 18.17%.

PABC has inhouse technical expertise as well as contracts with international technical experts.

The Company enjoys 10-year tax holiday from the start of its commercial production, under SEZ.

In terms of leadership, Mr. Azam Sakrani stepped down as Chief Executive Officer effective June 30, 2024.

The Board of Directors appointed Mr. Zain Ashraf Mukaty as the new CEO, effective July 1, 2024.

Election of BoD was held on 23rd May 2025 and resultantly Mr Ahmed Mukaty joined the Board as a non-executive director.

Following this change Board, committees were reconstituted.

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