Alexandria Flour Mills reports 10.7% decline in H1 net profits despite revenue growth
EGYPT – Alexandria Flour Mills (AFMC), a leading Egyptian player in grain processing and distribution, has announced a 10.7% year-on-year decrease in net profits after tax for the first half (H1) of the fiscal year 2024/2025, with profits falling to EGP 27.620 million (US$ 549,182) from EGP 30.916 million (614,580).
This decline comes despite a 16.7% increase in revenues, which rose to EGP 176.547 million (US$3.5M) from EGP 151.292 million (US$3M).
The significant increase in revenue is a testament to the growing demand for Alexandria Flour Mills’ diverse product portfolio and the effectiveness of its market expansion strategies.
The milling giant operates extensively in the manufacture, trade, import and export, storage, fumigation and maintenance, packaging, processing, and distribution of grain and its substitutes.
The company’s diverse product portfolio, which includes bakery items, pasta, jams, sweetness, tahini, biscuits, and other foodstuffs, is a key factor in its financial success. This diversity ensures stability and resilience in the face of changing market conditions.
In the previous fiscal year 2023/2024, Alexandria Flour Mills reported a significant 34.3% increase in net profits after tax. The company’s net profits surged to EGP 55.797 million (US$ 1.809 million) after tax, compared to EGP 41.545 million (US$ 1.347 million) in the previous fiscal year.
Additionally, the company’s sales saw a substantial rise, reaching EGP 304.804 million (US$ 9.882 million), up from EGP 257.235 million (US$ 8.339 million) in the prior year.
The recent decline in net profits during H1 2024/2025 may be attributed to various factors affecting the global and local grain markets.
Egypt, being one of the world’s largest wheat importers, has faced rising costs for grain imports due to currency devaluation and inflationary pressures. These factors have likely impacted AFMC’s profit margins, despite its revenue growth.
According to a recent report by Reuters, global wheat prices have experienced significant volatility over the past year, driven by uncertainties in Black Sea exports and adverse weather conditions in key producing regions. This has placed additional financial strain on Egyptian milling companies, including AFMC, which rely heavily on imported wheat.
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