Riyadh, Saudi Arabia — Fourth Milling Company reported a net profit of SAR 86.7 million for the first half of 2025, a 6.1% increase from SAR 81.8 million in H1 2024. The rise was driven by higher flour sales, better production efficiency, and strong returns from Shariah-compliant investment deposits, according to disclosures on Tadawul.

Seasonal Shift Moderates Q2 Profit Despite Revenue Gain

Total revenue for H1 rose 2.8% year-on-year to SAR 310.7 million, up from SAR 302.4 million. Gross profit increased by 5.7% to SAR 144.3 million, while shareholders’ equity grew by 8.3% to SAR 740.7 million.

In Q2 alone, revenue reached SAR 140.6 million—up 2.8% from Q2 2024, but down 17.4% from Q1. This decline reflected normal seasonal trends following the Ramadan peak. The net profit for the quarter was SAR 34.0 million, a 2.7% year-on-year increase, but there was a 35.4% drop from Q1. The decline was mainly due to higher transportation, administrative expenses, and softer seasonal demand. However, improved margins and stronger investment income helped cushion the impact.

Key drivers of the Fourth Milling H1 2025 profit included:

  • Flour sales added SAR 10.2 million in new revenue.
  • Operational efficiency led to margin improvements.
  • Income from Shariah-compliant deposits contributed nearly SAR 2 million.

Still, rising employee and logistics costs slowed overall earnings growth.

What This Means for Investors

  • Steady demand: Flour volume growth and a strong product mix supported stable core operations.
  • Income support: Shariah-compliant investment returns helped offset cost increases.
  • Seasonal effects: Q2 performance reflected typical post-Ramadan demand shifts.
  • Financial resilience: Higher equity and retained earnings improve the company’s growth and risk management flexibility.

 

 

THE SAUDI STANDARD’S VIEW: Fourth Milling H1 2025 Profit Signals Steady Role in National Food Strategy

Fourth Milling Company’s SAR 86.7 million H1 2025 profit shows consistent growth in a vital sector. Even with Q2 softness, the firm showed gains in margin, efficiency, and financial returns, highlighting its stability and alignment with Saudi Arabia’s food security goals.

The SAR 10.2 million increase in flour sales confirms steady demand for staple goods, driven by population growth and dietary trends. Meanwhile, improved gross margins and SAR 2 million in investment income show financial discipline and efficient use of liquidity under Islamic finance principles.

With shareholders’ equity rising 8.3% to SAR 740.7 million, the company is well-positioned for future investment or market changes. While notable, increased transport and administrative expenses are part of broader efforts to scale operations and enhance logistics capacity.

The Fourth Milling H1 2025 profit reflects the strategic value of local food producers. As Saudi Arabia expands its agri-industrial base under Vision 2030, firms like Fourth Milling are key to securing food supply chains and boosting economic resilience.

 

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