GCR Upgrades Johnvents Industries National Scale Financial Strength Rating to BBB+, A2

 Fidelis David in Akure

GCR Ratings has upgraded the national scale long-term and short-term issuer ratings of Johnvents Industries Limited, an indigenous agribusiness and manufacturing company and the owner of the largest cocoa processing factories in Nigeria, to BBB+ and A2 respectively, from the previous ratings of BBB and A3.

The Group Managing Director of Johnvents Group, John Alamu, who confirmed the upgrade in a statement made available to journalists in Akure, Ondo State yesterday, said the company was proud to announce the significant achievement in its financial standing.

Alamu said the upgraded ratings, now at BBB+ for the long-term and A2 for the short-term, signifies Johnvents’ strengthened creditworthiness and heightened capacity to meet financial obligations.

He explained that GCR Ratings, a globally recognised credit rating agency, announced this following the recent evaluation of the company’s financial performance, risk management, overall market positioning, and evolution into an agribusiness and manufacturing group.

According to him, “Johnvents has evolved into one of the leading processors and exporters of cocoa in Nigeria. This is bolstered by an increase in its plant capacity to 45,000 metric tons (MT) per year from 15,000MT/year previously following the acquisition of one of the largest cocoa processing companies, Premium Cocoa, Ile-Oluji.”

Alamu explained that the group has also diversified into fast-moving consumer goods, producing cocoa-based confectionery products and carrying out much of the distribution of goods locally and for export through its logistics subsidiary.

Besides, the GMD confirmed that this is the third rating announcement this year alone and the sixth in three years.

He said: “This year marks the third instance since 2021 where we’ve secured investment grade ratings from three esteemed agencies: Augusto & Co, Data Pro, and GCR. The recent upgrade from BBB flat to BBB+ holds significant value for us, affirming Johnvents’ robust leverage and commitment to meeting obligations, underscoring our substantial growth and diversified business offerings across the African agricultural value chain.

“As we bolster our presence in the cocoa value addition sector, commodities trading, production, manufacturing, and logistics across our diverse businesses, Johnvents remains steadfast in its commitment to emerge as a global leader in agribusiness, driving agricultural transformation and fostering economic development across Africa.”