Riyadh, Saudi Arabia — Modern Mills for Food Products reported an 11.6% increase in Q2 2025 net profit, rising to SAR 49.66 million from SAR 44.5 million in Q2 2024. However, profits dropped 24.3% from SAR 65.64 million in Q1 2025, reflecting seasonal trends and pressure on profit margins.

Modern Mills Q2 Profit Raised by Feed and Flour Revenue Growth

Revenue climbed 7.9% year-on-year to SAR 240.52 million. This growth was driven by stronger sales in the livestock and poultry feed segment and rising demand for small-package flour. However, bran sales declined as the company prioritized internal feed production. Although margins were squeezed, strong cost control and reduced finance expenses helped preserve earnings.

Modern Mills H1 Earnings and Dividend Declaration

In the first half of 2025, net profit rose 5.3% to SAR 115 million, with revenue increasing 4.1% to SAR 500 million. The board approved a cash dividend of SAR 1 per share, equal to 100% of the nominal value. This payout totals approximately SAR 81.01 million for eligible shareholders.

What This Means for Investors

  • Growth despite margin pressure: Revenue gains supported net profit in a challenging cost environment.
  • Improved financial efficiency: Cost control and early debt repayments helped reduce financing costs.
  • Solid shareholder return: The SAR 1 dividend signals confidence in the company’s cash position.
  • Sector resilience: Feed and small-pack flour growth reflect sustained demand in Saudi Arabia’s food sector.

 

 

THE SAUDI STANDARD’S VIEW: Food Sector Resilience Underscores Strategic Self-Sufficiency

The 11.6% Modern Mills Q2 profit growth and the SAR 1 dividend demonstrate the company’s resilience and the critical role of the food industry in Saudi Arabia’s Vision 2030. Despite margin pressure and a sequential decline, the results highlight steady execution and strategic positioning.

  • Rising domestic demand: Strong sales in livestock feed and small-format flour point to evolving consumer preferences and increasing national food production capacity.
  • Operational maturity: The company’s attention to cost discipline and debt reduction reflects improved corporate governance. Profitability amid inflation shows Modern Mills’ adaptability.
  • Integrated supply chains: The shift from brand sales to internal feed use strengthens supply reliability. This strategy enhances control over inputs and supports local sourcing.
  • Reliable shareholder value: The full nominal dividend shows management’s commitment to returning value and sets a benchmark for Saudi food sector firms.

The latest results confirm Modern Mills’ role in building Saudi Arabia’s food security. As local production grows and efficiency deepens, companies like Modern Mills are helping drive economic transformation and investor confidence.

 

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