First Mills 2023 profit edges up to SAR 220.2M; Q4 at SAR 57.5M

First Milling Co. (First Mills) reported a slight increase in 2023 net profit to SAR 220.2 million from SAR 217.5 million in 2022.

The marginal increase was driven by revenues that grew by 5.5% year-on-year (YoY) to SAR 964.3 million in 2023, thanks to a 9% YoY rise in flour product sales despite the temporary shutdown of Mill C. In addition, the company launched new products, and reported strong growth in small pack sales. For the first time, the company recorded sales in its newly launched pre-mix products, and the PESA mill offerings.

Aloula retail sales recorded 37% YoY growth in small-pack sales.

Bran sales also rose by 5.9% YoY, due to the success of the company’s strategy in building and further diversifying its customer base and increasing its geographic coverage across the Kingdom.

Overall, First Mills sales value and volumes, led by flour, increased. Further, the company controlled general and administrative expenses, which dropped by about SAR 24 million, including some non-recurring expenses.

On the other hand, feed products declined by 1% YoY despite a 9% rise in sales volumes.

Financing interest costs related to the long-term loan also increased. This followed the completion of the merger with the parent company, Al Raha Al Safi.

The fourth-quarter net earnings more than doubled to SAR 57.5 million from SAR 20.29 million in Q4 2022.

On a quarterly basis, the company’s net profit grew 6.4% from SAR 54 million in Q3 2023.

Shareholders’ equity, no minority interest, increased to SAR 892.1 million as of Dec. 31, 2023, compared to SAR 751 million in the year-earlier period.

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