First Milling Co. maintains market dominance in Saudi Arabia, eyes regional expansion

SAUDI ARABIA – First Milling Co. (First Mills), the leading flour producer in Saudi Arabia, continues to dominate the Kingdom’s flour production and sales market, CEO Abdullah Ababtain confirmed in an exclusive interview with Argaam.

Speaking on the sidelines of the Capital Markets Forum 2025 in Riyadh, Ababtain revealed that First Mills is now exploring expansion opportunities in other Gulf Cooperation Council (GCC) and regional markets.

This follows the company’s recent approval from the General Food Security Authority (GFSA) to begin exports, marking a significant milestone in its growth trajectory.

According to Ababtain, the company’s strong performance in Q4 2024, driven by robust revenue growth and strategic expansions, has solidified its position as a key player in the region’s food security landscape.

The CEO noted that the company achieved a strong double-digit profit margin of 25%, underscoring its operational efficiency and market leadership.

Feed products, which saw a 17% increase in sales, played a significant role in driving annual revenue growth. This was attributed to effective sales strategies, increased demand, and improvements in inventory management.

The company also benefited from enhanced milling capacities, which contributed to improved financial and operational performance.

Ababtain highlighted that the revenue growth was further supported by the company’s expansion into new geographical areas and the addition of new product categories, such as those from its Durum Mill and pre-mix plant.

First Mills has also invested heavily in upgrading its equipment and adopting advanced technologies, which have significantly enhanced its production capabilities. These investments have positioned the company to meet growing demand while maintaining high-quality standards.

Looking ahead, the company’s board of directors has approved several expansion projects, including the establishment of a new flour-grinding unit (Mill C) in Qassim. With a production capacity of up to 600 tons per day, the new facility is expected to begin operations by mid-2026. This expansion is anticipated to bolster First Mills’ competitive position in the central and northern regions of Saudi Arabia.

Optimism for Q1 2025

Ababtain expressed optimism about the company’s performance in Q1 2025, citing the upcoming Ramadan season as a key driver of increased demand for its products.

The Ramadan period, which shifts 11 days earlier each year, typically sees a surge in demand for flour and related products. The CEO expects this trend to positively impact the company’s performance in the coming months.

“We are confident that the strong demand for our products will continue to drive growth in the near future. Our focus on innovation, strategic expansions, and operational excellence positions us well to achieve outstanding results,” Ababtain said.

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