Riyadh, Saudi Arabia — First Mills Company posted a 13% increase in Q2 2025 net profit, reaching SAR 51.4 million, compared to SAR 45.5 million in Q2 2024. However, profits fell 35.5% from SAR 79.7 million in Q1 2025.

Revenue Trends and Profit Drivers

  • Revenue in Q2 slipped 1.9% to SAR 237.8 million, down from SAR 242.3 million in the same period last year. This was mainly due to seasonal weakness in animal feed and bran sales.
  • However, the company boosted sales of higher-margin flour products to offset the decline.
  • Improved cost control in general and administrative expenses also supported earnings.
  • In addition, reduced financial costs—driven by lower interest rates and better cash management—helped lift the bottom line.

H1 2025 Summary

  • Net profit for H1 2025 rose 6.4% to SAR 131.1 million, up from SAR 123.2 million in H1 2024.
  • Revenue edged up 0.5% to SAR 521.4 million, supported by a 5.4% increase in flour sales to SAR 310 million. This growth reflects operational efficiency and tighter cost discipline.

Investor Takeaways

  • Margin focus delivers: Strong flour performance helped offset declines in lower-margin categories.
  • Seasonal factors remain: Expected softness in feed and bran weighed on Q2, a trend to watch in future periods.
  • Disciplined spending: Lower finance costs and leaner operations helped protect profits.
  • Steady path forward: The company’s results suggest a stable, well-managed earnings profile.

 

 

THE SAUDI STANDARD’S VIEW: First Mills Q2 2025 Profit Highlights, Margin Strength, and Resilient Strategy

Despite a slight revenue drop, First Mills Company’s 13% profit increase in Q2 2025 demonstrates the agility of Saudi Arabia’s food manufacturing sector. As Vision 2030 promotes local food security and industry self-reliance, First Mills stands out for its operational adaptability and market discipline.

  • Flour Sales Cushion Revenue Softness: Even with a 1.9% revenue dip, First Mills’ strategic focus on high-margin flour products allowed it to preserve profitability. This approach reflects how Saudi agri-processors adjust product lines to navigate seasonal trends and changing consumer demands.
  • Cost Discipline Mitigates Quarterly Pressure: Although profit declined compared to Q1, lower administrative costs and financial charges helped absorb seasonal volatility in bran and feed sales. These efforts highlight the company’s operational efficiency and capital flexibility.
  • H1 Growth Validates Business Model: First Mills posted SAR 131.1 million in H1 profits, a 6.4% annual rise. Steady revenues and rising flour sales show the company’s strength in sustaining earnings, even with modest topline shifts.
  • Supporting National Priorities: First Mills contributes to Saudi Arabia’s food security strategy by localizing production, reducing import dependency, and stabilizing supply chains. Its continued success will be crucial to achieving Vision 2030’s food resilience goals.

Ultimately, First Mills’ Q2 2025 profit performance proves that scale, product focus, and cost control can deliver strong results—even in seasonal downturns. First Mills plays a central role in shaping a self-sufficient and competitive national food system as the Kingdom pushes toward agricultural and food sector diversification.

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