First Milling Co. Announces its Estimated Financial Results for the Period Ending on 2024-12-31 (Twelve Months)

1) Sales growth across all product categories was driven by a strong product mix, increased volume, resulting in a significant 17% increase in Bran sales, 13.2% in Feed, and 5.2% in Flour Sales.

2) Gross Profit increased by 13.4% to SAR 118.6 million, up from SAR 104.6 million in the same quarter last year, primarily driven by higher revenue growth while maintaining cost leadership.

3) Operating Expenses remained in line compared to the same quarter last year, with some increase attributed to supporting the revenue growth.

As a result of the above, net profit increased by SAR 8.9 million compared to the same quarter last year, with the net profit margin rising to reach a solid 24.7% of revenue, while earnings per share amounted to SAR 1.20 in the current quarter, compared to SAR 1.04 for the same quarter last year, representing an increase of 15.5%.

1) Sales growth across all product categories.

2) Reduced feed raw materials costs and maintaining cost leadership in line with sales growth.

1) Feed sales witnessed robust double-digit growth of 13.3%, driven by increased demand, while Flour slightly decreased by 1.5% following high season sales period, and Bran sales decreased by 2.6% compared to the previous quarter due to the Company’s decision to prioritize Feed production to meet rising demand.

2) Gross Profit increased by 6.3%, reaching SAR 118.6 million compared to SAR 111.5 million in the previous quarter, primarily driven by higher revenue growth while maintaining cost leadership and the competitiveness of feed prices.

1) An SAR 7.6 million increase in revenue attributed to higher sales in Feed, improved product mixes, and better pricing management.

2) The continued cost management enhancement, including distribution, selling, and manufacturing efficiencies during the period.

1) Feed sales achieved robust double-digit growth of 16.7%, driven by increased demand and effective sales execution, while Flour maintained its growth momentum with a 7.2% increase, bolstered by the improved capacity, and utilization as well as the record performance during the Ramadan season. However, Bran sales slightly declined by 0.4% compared to the same period last year as a result of the Company’s decision to prioritize Feed production to meet rising demand.

2) The Company's improved product mixes and and better pricing management.

3) Gross Profit increased by 10.4%, reaching SAR 456.1 million compared to SAR 413.1 million in the same period last year. This was mainly driven by higher revenue growth while maintaining cost leadership, the upgrade of the new mills, and improved product mixes.

As a result of the above, the net profit increased by SAR 30.7 million compared to the same period last year, with the margin holding steady at a solid 23.9% of revenue, while earnings per share amounted to SAR 4.52 in the current period, compared to SAR 3.97 for the same period last year, representing an increase of 13.9%.

1) The increase in revenue by SAR 84.6 million as a result of the growth in the sales of Feed and Flour along with the improvement in the product mixes, pricing, and the launching of new products.

2) Continued growth in small-pack products yielding better margins.

3) Ongoing efficiency improvement through maintaining cost leadership.

4) Optimization of cash management by improving interest income from the Shariah-compliant Murabaha deposits.