First Mills 9M 2023 profit dips 18% to SAR 162.7 mln; Q3 at SAR 54 mln

First Milling Co. (First Mills) reported an 18% profit drop in the first nine months of 2023 to SAR 162.7 million, compared to SAR 197.2 million in the year-earlier period.

The milling company cited an increase of nearly SAR 34 million year-on-year (YoY) in net financing, compared to the same period last year. This is mainly attributed to the long-term financing recorded in the company's financial statements after the completion of its merger with the parent, Al Raha Al Safi Co.

By contrast, revenue grew by 4.5% YoY, driven by a rise of 8% YoY in flour sales along with a 7% YoY increase in bran sales on the acquisition of new customers and wider geographic product coverage.

First Mills reported additional financial income of SAR 3.5 million from Murabaha deposits.

Excluding the impact of these interest costs, the like-for-like same period's net profit would be approximately in line with last year.

The third-quarter net profit fell by 15% to SAR 54 million from SAR 63.49 million in the prior-year period.

Gross profit declined by 3.2% to SAR 100.4 million from SAR 103.8 million in Q3 2022, due to competitive feed prices.

The Q3 net earnings jumped 54.8% from SAR 34.91 million in the previous quarter.

Shareholders’ equity, no minority interest, reached SAR 840.9 million as of Sept. 30, 2023, compared to SAR 828.4 million a year earlier.

View More Financial Results