Topline growth and double-digit margins driven by consistent strategy execution
Jeddah, Saudi Arabia-headquartered First Milling Company recently announced its financial performance for H1 and Q2-2023.
First Mills achieved a 4.5% year-on-year (YoY) growth in sales in H1-2023, generating a total revenue of SAR 470mn. This topline growth is attributed to the successful execution of the Company’s growth strategy through its business to business and retail channels.
In Q2-2023, revenue rose 3.4% YoY, reaching SAR 214mn, supported by the Company’s efforts to optimize efficiencies and enhance capacities. As a result, capacity utilization for Q2-2023 reached 99%, increasing 7% compared to the same period last year, the company revealed in a press communique.
Healthy finances
The Company closed H1-2023 with EBITDA of SAR 166mn, flat over the same period last year reflecting healthy financial performance. H1-2023 net profit declined 19% to SAR 108.7mn. Consistent with the H1 2023 performance, Q2-2023 net profit declined by SAR 26mn YoY to SAR 35mn while Q2-2023 net profit margin stood at 17%.
Notably, the Company’s flagship flour business achieved a 7% YoY rise in H1-2023 revenue, reaching SAR 274mn, with Q2-2023 revenue witnessing a 9% YoY increase to SAR 124mn.
“In the first half of 2023, First Mills demonstrated its continued ability to drive revenue growth from a firm foundation of large-scale production capabilities, high utilization rates, and efficient operations. Our commitment to operational excellence has allowed us to maximize productivity, effectively meeting the growing demand for our products,” affirmed Abdullah Ababtain, Chief Executive Officer, First Mills
