Arabian Mills reports US$22.6M in Q1FY2026 profits
The company reported a 33% year-on-year increase in net profit to SAR 84.89 million (US$22.6M), up from SAR 63.94 million in the same period last year.
SAUDI ARABIA – The Arabian Mills for Food Products Co., a leading flour and feed producer in Saudi Arabia, recorded a net profit of SAR 84.8 million (US$22.6 million) during the first quarter of 2026, up nearly 33% year on year.
The company attributed its results to revenue growth in all segments, continuous efficiency improvements and cost controls.
This bottom-line surge was accompanied by a solid 10% rise in total revenue, which climbed to SAR 272.73 million (US$72.6M), signaling strong market demand and operational excellence in the Kingdom’s food sector.
The flour division, which remains the cornerstone of the business and accounts for nearly 60% of total operations, saw a 9.47% increase in revenue.
This was boosted by balanced performance in both the B2B sector (up 8.22%) and the B2C retail segment (up 21.82%).
Additionally, the bran segment outperformed expectations, with a 14% revenue increase driven by competitive pricing and heightened market demand.
The feed segment also contributed to the upward trajectory, growing by nearly 7% as livestock demand remains steady across the region.
Total shareholders’ equity, excluding minority interests, stood at SAR 1.3 billion as of Q1 2026, up from SAR 1.09 billion a year earlier.
Compared with the fourth quarter of 2025, revenue was flat, while net profit jumped 49%, helped by early repayment of a loan that reduced debt and financial costs.
“We recorded higher growth in bran sales due to an increase in market demand, which was offset by a slight decrease in flour sales due to seasonality,” Arabian Mills said of the quarter-to-quarter results.
The strong first-quarter performance builds on a solid full-year 2025 showing. Arabian Mills recorded a net profit of SAR 237 million (US$63.2M) in 2025, up 11% from 2024, and full-year revenue reached SAR 997.7 million (US$265.9M), up 2.2%. Improvements in managing general and administrative costs also contributed to its positive financial performance.
Looking ahead, the company is investing heavily in capacity expansion.
On March 3, Arabian Mills signed a pair of contracts with Switzerland-based Bühler AG to supply equipment and supervise the execution of its flour and feed milling expansion projects in Saudi Arabia.
The projects include a new flour mill, a new feed mill and new warehouses at Riyadh, and an upgraded flour mill at Hail, all expected to have a positive impact on earnings once operational.
The expansion signals Arabian Mills’ confidence in sustained demand growth across the Kingdom’s grain and animal feed sectors.
Additionally, the launch of the “Master Mills” brand, featuring 28 premium products, is set to capture the high-end retail market further.
As the company continues to align its operations with Saudi Arabia’s Vision 2030 food security goals, its recent performance underscores its role as a leading pillar in the national agricultural infrastructure.
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