Fourth Milling Company reports strong full year 2024 results with record-breaking revenue

Zawya

12-03-2025

RELATED TOPICS
EARNINGS
Dammam, Saudi Arabia: Fourth Milling Company ("MC4" or the "Company"), a leading producer of flour and its derivatives in the Kingdom of Saudi Arabia, has announced its financial results for the fourth quarter of 2024 ('Q4 2024') and the full year ended 31 December 2024 ('FY 2024'), showcasing substantial growth in revenue and profitability driven by a notable increase in sales volumes. The Company reported the highest annual revenue in its history of SAR 629 million, marking a 12.7% year-on-year (y-o-y) increase, and FY 2024 net profit surged 19.7% y-o-y to SAR 171 million.
Key Financial and Operational Metrics
SAR Millions
Q4'24
Q3'24
Change
FY'24
FY'23
Change
Revenue
167
147
13.1%
629
558
12.7%
Gross Profit (Loss)
81
65
23.7%
295
246
19.7%
Operational Profit (Loss)
54
38
40.4%
198
164
21.1%
Net profit (Loss)
42
35
19.7%
171
143
19.7%
Total Comprehensive Income
42
35
20.4%
171
143
19.7%
Profit (Loss) per Share
0.08
0.07
0.32
0.26
The growth in both Q4 and FY 2024 revenue was primarily driven by strong performance across the business. Flour categories grew by 15% compared to the previous year, while feed and bran increased by 12% y-o-y. Additionally, the Company achieved a 16% volume growth this year, aided by a stronger footprint and broader geographic coverage.
Net profit growth was driven primarily by higher revenue and enhanced production efficiency, which improved profit margins.
The Company's Board has approved a total interim cash dividend of SAR 59.4 million, equivalent to SAR 0.11 per share, for the second half of the year, to be paid within 15 working days from the eligibility date of 24 March 2025.
The Company listed 30% of its total issued share capital on the Main Market of the Saudi Exchange and started trading under the ticker symbol '2286' on 29 October 2024. Institutional investors were allocated 100% of the offer shares during the book-building process, which resulted in 119 times oversubscription, generating an implied market capitalization of SAR 2.862 billion at listing at SAR 5.30 per share.
Khalid Al Maktary, CEO of Fourth Milling Company, said: 'We are proud to report robust financial performance, highlighting the strength of our business and a compelling investment case. In Q4 and FY 2024, we achieved a 20% increase in net profit and a 13% rise in revenue, driven by growth across all of our businesses, and through enhanced production efficiencies that resulted in higher margin. Additionally, we solidified our leadership in the market, with our flagship flour brand, FOOM, capturing about 30% of the volume share in the Consumer Pack segment.
As a high-growth company, our strategy and focus remain on scaling production and distribution, expanding our product portfolio, enhancing quality and efficiency, and investing in infrastructure, talent, and processes to meet the rising demand for high-quality flour and feed products. With strong macroeconomic fundamentals and dynamic growth potential, we are committed to further strengthening our market position, delivering exceptional value for our shareholders, ensuring both capital growth and attractive returns, and advancing the Vision 2030 goals of food security and local production."
With three strategically located production facilities in operation in Dammam, Madinah and Al-Kharj, MC4 caters to more than 80% of the population in Saudi Arabia approximately. As part of its strategy to drive business growth and enhance its market leadership, the Company is focused on scaling its production capacity and growing its customer base. Further, MC4 secured approval from the General Food Security Authority (GFSA) to export flour products to regional and international markets, allowing the Company to capitalize on opportunities for product expansion both regionally and globally. Furthermore, the Company received GFSA's approval to increase its flour production capacity by 11.67%, from 945,000 metric tons to 1,055,250 metric tons. This capacity enhancement will enable the Company to produce a greater volume of finished goods, including flour, bran, and animal feed.
Outlook
In addition to continued organic growth—particularly from its flagship retail brand FOOM—MC4 anticipates a positive impact on its financial performance in the forthcoming periods from GFSA's approval to increase the Company's flour production capacity by 11.67% and export its flour products to regional and international markets.
-Ends-
About Fourth Milling Company (MC4):
Fourth Milling Company (MC4) is a leading producer of flour and its derivatives in Saudi Arabia, established in 2017 as part of the Saudi milling industry privatization initiative. With over 40 years of heritage, MC4 specializes in producing high-quality flour, wheat derivatives, and animal feed products that meet the demands of the Kingdom's growing population. Its flagship brand, FOOM, is the top local flour brand, recognized for its quality and market-leading position. Strategically headquartered in Dammam, MC4 operates state-of-the-art production facilities across Dammam, Madinah, and Al-Kharj, covering more than approximately 80% of the Kingdom's population. Committed to operational excellence, sustainability, and Saudi Arabia's Vision 2030 goals, MC4 continues to drive innovation in food security and create long-term value for its stakeholders.
MEDIA AND INVESTOR ENQUIRIES ([e-mail])
Instinctif Partners
Matthew Smallwood / Joann Joseph
Email: [e-mail] / [e-mail]