First Milling profits increased to SAR 74 mln during Q1 by 2%

The net profit after zakat and tax for the First Milling Company rose to SAR 74 million during the first quarter, compared to SAR 72.4 million in the same quarter of last year, at a rate of 2%. This came after the announcement today of the preliminary financial results for the period ending on 31-03-2023 (three months).

The operating profit amounted to SAR 91 million in the first quarter, compared to SAR 78 million in the same quarter of the previous year, an increase of 17%.

As for the total profit, it amounted to SAR 120 million in the current period, compared to SAR 111 million in the same period last year, an increase of 8%.

Earnings per share in the current period amounted to SAR 1.33, compared to SAR 144.9 in the same period last year.

First Mills Company recorded in Q1 2023 net profit of SAR 73.8 mln and grew by 2% vs Q1 2022.

It is worth noting that the Financing cost in Q1 2023 is higher by 19.4mln vs the same period in 2022 since the Interest charges related to the long-term loan started to be recorded in the company financials from 15th September 2022 after the merger with the parent company. Like For Like, Net Profit Growth is 24% vs the same period last year.

Growth in Net profit is driven by:

• Revenue grew by 5%, mainly driven by higher flour sales in Ramadan season and higher sales of Bran.

• Higher Gross profit by 1% vs same period last year (47% 2022 Q1 GP vs 46% Q1 2023) driven by higher volume sales.

• The decrease in General, Selling and marketing costs amounted to 4.6 million SAR.

The net profit increased vs last quarter by SAR 53 mln, mainly driven by: –

• Higher sales by 12%, amounting to SAR 29 mln, driven by higher sales of flour during Ramadan season and higher sales of Bran.

• The cost in Q1 2023 is lower than Q4 in 2022 driven by one offs and non-recurring cost booked in Q4 2022 ~ SAR21mln.

• Interest income booked in Q1 2023 driven by short term deposit (in compliance with Sharia law) and hedge benefit ~ 7mln SAR

Revenue by Categories: –

Flour grew by 5.4% vs same period last year driven by Ramadan Season and significant growth in Retail channel.

Bran with Feed grew by 5% vs last year.