SAUDI ARABIA – First Milling Company, a market-leading Saudi milling company has reported substantial growth in revenue and profitability for the fiscal year 2023, attaining 5.5% revenue growth.

According to the company, the impressive results were driven by a 9% increase in flour production, contributing significantly to the overall revenue growth of SAR 964.3 million (US$257.1 million).

In addition, the company also attributed its revenue growth to a 5.9% surge in bran revenue driven by a diversification of its customer base and increasing its geographic coverage across Saudi Arabia.

One of the pivotal moments for First Mills in 2023 was the successful introduction of its premix category into the market, marking the beginning of what is anticipated to be a period of sustained double-digit growth.

Furthermore, the company witnessed a 1.25% rise in net profit, reaching SAR 220.2 million (US$58.8M).

In 2023, First Mills launched the PESA mill, allowing the company to begin producing the country’s first locally produced Chakki Atta flour. The country’s first durum mill was commissioned in the fourth quarter.

These strategic projects enabled First Mills to optimize its cost and production dynamics to achieve economies of scale as it expands its geographic reach, covering all major regions of Saudia Arabia, the company said.

Reflecting this expansion, the company recorded revenue growth across all its geographic segments in 2023, with Alhasa leading the growth by 12.3% followed by the Jeddah plant achieving strong year-over-year growth of 7.2%, Tabuk at 2.6% and Qassim at 2%.

Abdullah Ababtain, the CEO of First Mills, expressed satisfaction with the company’s financial performance, highlighting the successful execution of its strategy to diversify its product portfolio, expand its geographical footprint, and reach a broader customer base.

He emphasized the significance of downstream operations, exemplified by the launch of the PESA mill and mixing plant, and the commissioning of the durum mill and Jeddah Mill-C upgrade.

“We delivered a robust financial performance, showcasing our ability to enhance both top-and bottom-line growth, underpinned by our extensive production capabilities, high utilization rates, and cost-efficiency measures,” said Abdullah Ababtain.

First Milling Company marked a significant milestone in 2023 by becoming the first milling company to list on the Saudi Exchange. The fiscal year also marked its first complete year as a listed company, further solidifying its position as a leader in the Saudi Arabian milling industry.

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