Fourth Milling Co. Q3 profit jumps 10.7% on surge in flour sales
Fourth Milling Co. said this growth was primarily driven by a 16.6% increase in flour sales volumes, which offset a decline in feed and bran revenues.
SAUDI ARABIA – Fourth Milling Company (MC4) posted a 10.7% growth in net profit for the quarter ended 30 September 2025, reaching SAR 52.1 million (US$13.9 million), supported primarily by a sharp 16.6% rise in flour sales volume, which lifted quarterly revenue by 5.7% to SAR 169 million (US$45.1 million).
The Saudi Arabia-based grain processor said improved operational discipline and cost optimisation also strengthened quarterly performance, after reporting a 16% decline in general & administrative expenses and a 20% increase in income generated from Sharia-compliant deposits due to better treasury and funds management.
These positive factors were, however, partly offset by a significant 45% spike in selling and distribution costs, attributed mainly to higher logistics expenditure, increased employee-related expenses, and enhanced marketing investments executed during the period, reflecting inflationary pressures affecting regional grains, flour distribution, and transportation.
Fourth Milling Co. is one of the four entities privatized and split from the former state-owned General Organization for Food Security (GFSA) in 2017.
The group operates three milling plants in Saudi Arabia with installed capacity of 3,150 tonnes per day of wheat milling supported by animal feed production capacity of 450 tonnes per day.
The company noted that the Q3 revenue surge was driven largely by consumer-facing flour demand, which compensated for weaker feed and bran revenues that have remained under downward pressure across supply chains this year.
Demand signals for milling and bakery products remain strong in Saudi Arabia, supported by population growth, food service expansion and ongoing strategic import substitution as part of the Kingdom’s food security frameworks.
For the first nine months of the year, Fourth Milling’s revenue amounted to SAR 17.5 million (US$4.7 million), representing a 3.8% lift from the same period a year ago, while net profit for the nine-month period increased by 7.8% to SAR 10 million (US$2.7 million).
The company said this steady year-to-date trend underscores that flour remains the company’s core commercial and earnings driver amid cost inflation volatility within feed markets, transport, workforce compensation, and marketing expenditure.
The company is expected to continue facing cost pressures heading into 2026, given logistics and consumer inflationary trends regionally.
However, the continued expansion of baked foods, flour-based snack processing, and foodservice demand in the Saudi market is expected to remain supportive of flour utilisation volumes and revenue contribution into the new year.
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