First Mills Records Q2 Net Profit of SAR 51.4 Mln, a 13% Increase

First Mills Co. recorded on Thursday net profit of SAR 51.4 million during the second quarter of 2025, compared to SAR 45.5 million in the same quarter last year, a 13% increase. This came after today’s announcement of the estimated financial results for the (six-month) period ending June 30, 2025.

Operational profit reached SAR 66.2 million in the second quarter of 2025, compared to SAR 63.8 million in the same quarter of the previous year, an increase of 3.7%.

Profits per share reached SAR 2.37 in the second quarter, compared to SAR 2.23 in the same quarter of the previous year.

1. First Mills Company recorded revenues of SAR 237.8 million during the current quarter, representing a slight decline of 1.9% compared to SAR 242.3 million for the same quarter of the previous year. This decline was due to a seasonal decline, particularly in the feed and bran sectors. This decline was largely offset by the Company’s strategic focus on higher-margin flour products to offset lower feed and bran volumes.
2. Strong growth in flour sales of 5.7% was driven by increased demand, which contributed to an improved diversity of the Company’s higher-margin products. This performance was supported by continued growth in small-pack products under the “Aloula” or “First” brand, which saw strong demand across retail and wholesale channels.
3. Product diversification led to a 2.3% increase in gross profit to SAR 102.7 million, while net profit increased by SAR 5.9 million, with a strong net profit margin of 21.6%, supported by cost control and the performance of the flour segment.

While seasonal factors and competitive pressures impacted some products, the Company maintained strong profit margins, highlighting its operational flexibility and strong demand for flour.

The increase (decrease) in net profit during the current quarter compared to the same quarter of the previous year is due to a 13.0% increase in net profit for the current quarter, reaching SAR 51.4 million, compared to SAR 45.5 million in the same quarter of the previous year, an increase of SAR 5.9 million. This growth was supported by several key factors:

1. Strong performance in flour sales, which positively impacted gross profit;
2. Effective cost control, particularly general and administrative expenses, strengthened the Company’s position in cost management; and
3. Lower financial costs, as a result of lower bank interest rates and improved cash surplus management, further supported net profit growth.

These factors, coupled with improved product diversification, operational efficiency, and financial discipline, enabled the Company to achieve strong profit growth.