First Mills Q2 2026 net profit rises 28% to US$17.6M
The company attributed the improved performance to its strategy of expanding higher-value product offerings, increasing operational efficiency, and strengthening its feed segment, which has become a key driver of growth.
SAUDI ARABIA – First Milling Company (First Mills), one of Saudi Arabia’s leading market operators in the milling sector, announced a 28% year-on-year surge in net profit to SAR 66.0 million (US$17.6 million) for the second quarter of 2026.
The impressive growth was primarily propelled by rapid expansion in its feed segment, strong demand across its core flour portfolio, and strategic operational efficiencies across its facilities in the Kingdom.
The company reported second-quarter revenue of SAR 301.3 million (US$79.6M), marking a 26.7% increase compared to SAR 237.8 million (US$63.4M) recorded in the same period last year.
Operating profit for the quarter climbed 30.4% to reach SAR 86.4 million (US$23.1M), up from SAR 66.2 million (US$17.7M) in Q2 2025.
For the first six months of 2026, total revenue reached SAR 634.0 million (US$169.1M), representing 22% year-on-year growth, while net profit for the half-year period advanced 11.4% to SAR 146 million (US$38.9M).
A major factor behind the second-quarter financial acceleration was the stellar performance of First Mills’ feed segment, which saw sales leap nearly 78.7% year-on-year.
This surge followed the operational integration of new manufacturing capacity, including the newly commissioned 600-tonne-per-day Mill C at the company’s Qassim facility, and the 130-tonne-per-day PESA Mill is nearing completion, further boosting capacity.
The company also launched its first exports of animal feed, broadening its export reach and supporting greater geographic diversity.
First-half performance highlights included flour revenue of SAR 346.7 million (US$92.4M), up 12% year on year, remaining the top revenue source due to steady demand, moderate volume increases, and stable pricing.
Feed revenue jumped 68% to SAR 231.2 million (US$61.7M), solidifying its role as the main growth driver, backed by higher production capacity and enhanced product offerings.
Bran revenue fell 24% to SAR 56.1 million (US$15M), aligning with the strategy to boost value by using more bran internally for feed production.
Chief Executive Officer Abdullah Ababtain noted that the strong quarterly results demonstrate the success of the company’s product mix optimization and downstream value creation.
He highlighted that despite global logistics challenges and regional market volatility, disciplined supply chain management and strategic raw material procurement ensured smooth operations across the company’s five major production sites in Jeddah, Qassim, Tabuk, and Al Ahsa, which collectively possess a daily milling capacity of 7,200 tonnes.
Looking ahead, First Mills aims to leverage its expanded industrial footprint, rising export activities, and deepened product diversification to sustain momentum in the local market while expanding its footprint across regional grain and feed markets.
The latest results follow a strong first quarter, in which First Mills reported a 1% net profit rise to SAR 80.1 million (US$21.4M), compared with SAR 79.7 million (US$21.3M) in Q1 2025, on a 17.3% rise in revenue to SAR 332.8 million (US$88.7M).
Sign up to HERE receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
