Latest news with #FirstMillingCo
Argaam
21-04-2025
- Business
- Argaam
First Mills signs SAR 630M credit facility with SAB
First Milling Co. (First Mills) signed a long-term Shariah-compliant bank facility agreement worth SAR 630 million with Saudi Awwal Bank (SAB). In a filing to Tadawul, the company said this mixed-use deal aims to support the company's commercial and operational activities, contributing to its future expansion. The financing, available until Dec. 31, 2035, is guaranteed under promissory notes of the facility amounts, First Mills said. The company noted that the loan aims to support its growth and expansion while optimizing financing costs, enhancing profitability, and delivering sustainable long-term returns for shareholders. The facilities include financing for debt repayments, working capital requirements, bank guarantees, and letters of credit, as needed. The board of directors approved the funding on March 23, with all necessary legal procedures completed and signatures received as a final version on April 20.
Argaam
25-02-2025
- Business
- Argaam
First Mills holds largest market share in flour production, sales; eyes expansion: CEO
First Milling Co. (First Mills) maintains the largest market share in Saudi Arabia's flour production and sales, CEO Abdullah Ababtain told Argaam in an interview. The company also seeks to explore expansion opportunities in other GCC and regional markets after obtaining the approval of the General Food Security Authority (GFSA) for exports, he said on the sidelines of the Capital Markets Forum 2025 in Riyadh. The growth in the company's profits in Q4 2024 was driven by all product lines, as well as the start of tangible impact of newly-launched products. The flour producer also benefited from the increase in its milling capacities, which helped enhance revenues and improve both financial and operational performance. He pointed out that the revenue growth was supported by expanding into new geographical areas and adding new product categories to the company's product portfolio, such as those from Durum Mill and pre-mix plant. In addition, the rise in revenue was buoyed by adding 500 tons per day through increased production capacity of Mills C and A in Jeddah. The CEO highlighted that First Mills maintained strong double-digit profit margins at 25%. Ababtain explained that feed products, which rose 17%, contributed significantly to the annual revenue growth. The company was able to implement effective sales strategies, driven by increased demand and improvements in sales and inventory management. The company also made several updates to its equipment, utilizing advanced technologies, which enhanced its production capabilities, the CEO added. On his expectations for the company's performance in Q1 2025, Ababtain said that the Ramadan season, which shifts 11 days earlier each year, typically sees a noticeable increase in demand for the company's products across all categories. He expected higher demand will continue to impact the company's performance positively in the coming period, expressing his optimism about continuing to achieve outstanding results. The company's board of directors approved expansion projects, including establishing a new flour-grinding unit (Mill C) in Qassim with a production capacity of up to 600 tons per day. Ababtain expected operations to begin by mid-2026, which will support the company's growth and boost its competitive position in the central and northern regions of the Kingdom.
