Arabian Mills 9M 2024 profit climbs 11% to SAR 156.4M; Q3 at SAR 54.9M

Arabian Mills for Food Products Co. reported a net profit of SAR 156.4 million in the first nine months of 2024, up from SAR 140.3 million in the year-earlier period.

This came as revenue increased by 12.91% to SAR 709.1 million in the current period, compared to SAR 628.1 million in 9M 2023. The topline growth fueled higher sales, thanks to marketing efforts, a broader customer base, market expansions, and an expanded product range.

The 9M 2024 revenue rise was also buoyed by strategic partnerships with key customers, coupled with sales support tailored to market needs.

This is besides the 42.87% year-on-year (YoY) increase in the feed segment’s results, supported by the launch of a new poultry feed product, which also lifted the company’s nine-month earnings.

Moreover, financing costs decreased YoY due to efforts to minimize the company’s loan balance. This is in addition to recognizing a cash surplus from bank deposits of SAR 2.78 million in 9M 2024, along with the SAR 5.74 million YoY slump in Zakat expenses.

On the other hand, the Q3 2024 net earnings plunged by 20% to SAR 54.9 million, from SAR 68.5 million in Q3 2023, given the company’s ongoing business expansions and fierce market competition. This was despite the YoY growth in sales of all Arabian Mills product categories.

Net earnings, however, jumped 19.05% from SAR 46.12 million in Q2 2024, as revenues climbed by 7.85% on a sequential basis to SAR 244.3 million in Q3 2024.

Total shareholders’ equity, no minority interest, advanced to SAR 979.07 million by Sept. 30, 2024, compared to SAR 759.27 million in a prior-year period.

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