Arabian Mills kicks off year with 15.4% increase in Q1 profits: CEO

Argaam

5 days ago

Mr. , CEO of Arabian Mills for Food Products Co., said in an interview with Argaam that the company is continuing to strengthen its financial performance, benefiting from strong demand in both the feed and flour segments. The company is also focused on reducing its debt and improving operational efficiency.
According to Argaam, Arabian Mills recorded a net profit of nearly SAR 64 million in Q1 2025, representing a 15.44% year-on-year (YoY) increase. The company's revenue also rose by 3.25% YoY, primarily driven by impressive performance in the feed segment, which increased by 15.59%, and the flour segment, which saw a growth of 7.18%. These segments contributed an additional SAR 7.8 million to the total revenue, fueling the company's profit growth.
Arabian Mills has successfully maintained strong profit margins through cost-control initiatives and operational improvements, as well as leveraging technological advancements to enhance efficiency and reduce expenses. Effective liquidity management and lower financing costs also played a role in achieving overall profit growth during the period.
Mr. Rohit highlighted that Arabian Mills is one of the largest flour producers in Saudi Arabia, holding a market share of 29%, according to data from the General Food Security Authority (GFSA). This strong market position offers greater opportunities for expansion within its core segments.
Furthermore, the company has reduced its financing costs through strategic debt reduction and improved financial revenues, achieved by optimizing cash management practices, which further supports profitability. Mr. Rohit anticipates steady revenue growth driven by sustained demand in key segments such as feed and flour.
Overall, Arabian Mills is well-positioned to build on its Q1 achievements, leveraging strategic initiatives to promote growth and profitability in Q2 2025. Mr. Rohit expressed optimism about achieving positive results in the second quarter, backed by initiatives focused on increasing productivity, reducing costs, and enhancing profitability.
Additionally, Arabian Mills is contemplating a new phase of international market expansion, having received orders from companies in several countries, including the UAE, Jordan, Sudan, Iraq, Yemen, Oman, Somalia, Kenya, Ethiopia, and Chad for its feed and flour products.
Mr. Rohit also explained that the company aims to increase its production volumes by continuously expanding and upgrading its mills, including the establishment of a new flourmill in Riyadh with a production capacity of 600 metric tons per day, in addition to a feed mill with a capacity of 400 metric tons per day. This will support the company in boosting revenues and meeting the growing demand.
As part of its strategy to diversify its brand portfolio, Arabian Mills is also preparing to launch conventional pasta and reintroduce Harees and Jareesh products under its 'FINAH' brand. The company has introduced the (Master Mills) brand, which features a carefully curated selection of products designed for everyday cooking and modern lifestyles. The offerings include premium flour, delicious cake mixes, durum wheat pasta, durum wheat semolina, and a special gluten-free range, all created to meet consumer demand.