BAHRAIN – Bahrain Flour Mills Co., a Bahraini public shareholding company, is planning to expand and modernize its operations in a strategic move to ensure long-term food security and provide value-added products in the Gulf region.
Among the plans are the construction of a new, state-of-the-art flour mill and a focus on digital transformation to meet Bahrain’s flour needs.
Speaking on the sidelines of the company’s annual general meeting of shareholders on March 27, Basim Al Saie, the company’s chairman said that the company will design the new mill this year, adding that the site for the factory has already been identified.
“The current location of the mill has become constrained so we had to look for a new site which has been identified and we are in discussions to finalise the agreement to start the process of designing the new mill that will be a landmark project for the country
“This project will be a landmark for Bahrain, featuring cutting-edge technology and a significantly larger capacity.”
Established in 1970, Bahrain Flour Mills Company also known as Al Matahin, currently operates a mill in Mina Salman with a capacity of around 520 tonnes of flour per day.
According to Al Saie, this increased capacity has the potential to not only enhance food security but also diversify BFMC’s product range, ultimately providing customers with a wider variety of high-quality options.
Mr Al Saie explained that the new mill is a national food security initiative and will be built to meet the kingdom’s flour needs for the next 30-40 years.
Boasting advanced technology, it will allow Al Matahin to diversify its product range, AL Saie said, noting that more details about the project including the location, size and cost, will be revealed in due course.
Al Matahin uses imported wheat to produce various types of flour like all-purpose, pizza, and whole wheat flour, as well as other grain products like jereesh and semolina.
Beyond the physical expansion, BFMC is embracing digital solutions.
The company has already transitioned to a new ERP system and established an e-commerce platform. “The e-platform replaces the outdated bank coupon system,” Al Saie explained.
“This digital solution enables us to better understand our customer base, identify their needs, and deliver the most suitable products efficiently, resulting in a more satisfying customer experience.”
The planned new mill and digital transformation initiatives come on the heels of three successfully implemented strategic plans.
These previous plans focused on expanding the existing factory’s capacity, expected to be completed by March 2024 and upgrading the company’s systems.
An additional milling unit has started operating at the factory since late last year, the chairman said at Bahrain Bourse’s Business Centre, where the AGM was held.
Bahrain Flour Mills profit surges 76% on record sales
Meanwhile, during the AGM, the company reported that, for the year ended December 31, 2023, the company has reported a 76 per cent jump in net profit at BD2,501,179 (US$6.6M) versus BD1,422,601 (US$3.8M) for 2022.
The meeting saw shareholders approve cash dividends at the rate of 25 fils per share (or 25pc of the paid-up capital) totalling BD620,620 (US$1.65M).
Al Matahin generated sales of BD7,677,225 (US$20.4M) in 2023.
The company attributes the rise in net income for 2023 to two main factors. First, they achieved record sales of subsidised products. Second, the market value of their equity investments and other income sources also increased.
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