Arabian Mills reports 15% surge in Q1 net profit driven by strong feed, flour sales
The company attributed its top-line growth to a double-digit rise of 15.59% for feed sales and a solid 7.18% increase in flour sales
SAUDI ARABIA – Arabian Mills for Food Products Co. has reported a 15.4% year-on-year increase in net profit for the first quarter ending March 31, 2025, reaching SAR 63.94 million (US$ 17.05 million), up from SAR 55.38 million (US$ 14.77 million) in Q1 2024.
The company’s revenue grew 3.25% to SAR 247.72 million (US$ 66.07 million) from SAR 239.92 million (US$ 64.01 million) in the corresponding period last year, driven primarily by robust performance in the poultry feed and flour segments.
Gross profit rose 3.93% year-on-year to SAR 116.71 million (US$ 31.13 million), supported by improved cost control and operational efficiency. Operating profit also advanced by 2.73% to SAR 79.84 million (US$ 21.28 million), with total comprehensive income reaching SAR 64.06 million (USD 17.09 million), up 15.3% from a year earlier.
Feed and flour drive revenue gains
The company attributed its top-line growth to several strategic moves. Feed sales recorded a double-digit rise of 15.59%, fueled by Arabian Mills’ expansion into the poultry feed segment and reinforced feed production capabilities.
Flour sales also saw a solid 7.18% increase, buoyed by a 3.56% rise in B2B revenues and a striking 55.53% boost in B2C sales, driven by aggressive small-pack promotions in modern retail channels.
However, revenue growth was partially offset by a 12.41% decline in bran sales, reflecting the company’s strategic shift to prioritize feed production due to higher market demand and increased competition in the bran market.
Compared to the previous quarter (Q4 2024), Arabian Mills’ revenue declined by 6.45% from SAR 264.81 million (US$ 70.59 million), largely due to softer feed and bran sales amid rising market competitiveness.
Nevertheless, net profit jumped by 11.75% quarter-on-quarter, thanks to disciplined cost management, reduced finance costs, and increased deposit revenue.
Gross profit dipped 6.25% from the previous quarter, while operational profit rose by 9.33%, reflecting improved administrative efficiencies.
Shareholders’ equity stood at SAR 1.10 billion (US$ 293.87 million), up 6.2% from SAR 1.04 billion (US$ 276.99 million) in Q1 2024. Earnings per share (EPS) rose to SAR 1.25 (US$ 0.33), compared to SAR 1.08 (US$ 0.30) in the prior-year period.
Looking ahead, Arabian Mills plans continued investment in high-growth segments, coupled with efficiency gains to sustain momentum in the coming quarters.
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