Arabian Mills’ gross profit margin reached 48% in 2023, IPO propels future growth: CEO

Arabian Mills for Food Products Co. posted a 16% year-on-year (YoY) rise in revenue to SAR 465 million in the first half of 2024. Net profit also climbed 41% YoY to SAR 102 million, CEO Rohit Chugh told Argaam in an interview.

The company boasts industry-leading profit margins, recording a gross profit margin of 48% in 2023. It also maintained strong growth in revenue and net profit since its privatization in 2021.

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Chugh affirmed that the initial public offering (IPO) timing is favorable as it supports the company's future growth, amid expectations for strong investor turnout, given the company's solid financial and operational track record, high-quality products, and professional team.

Since its privatization, Arabian Mills has succeeded in growing its market share significantly and expanding its product portfolio. Additionally, the company has enhanced its operations, minimized downtime and increased efficiency, contributing to strong growth and bolstered profitability.

The company is well-funded from existing sources to support the next phase of growth, as it continues to generate robust profits and maintains a strong cash position.

The CEO of Arabian Mills spoke about the company's development journey since its privatization, notably how it was able to increase its market share in a short period of time. He also discussed the company’s expansion plans in terms of opreations and product portfolio. Chug also explained the business model it adopts and the competitive edge it has in a the sector in which it operates.