First Mills expects gradual demand uptick in Q3: CEO

Abdullah Ababtain, CEO of First Milling Co. (First Mills)

First Milling Co.’s (First Mills) CEO, Abdullah Ababtain, expects demand to improve gradually in Q3 2025 due to market activity normalization after summertime. This would be supported by growth in the food sector and continued strong demand for flour products, he told Argaam in an interview.

The company will maintain its focus on cost control, sustainable growth, and profitability, he added.

Ababtain noted that ongoing government support provides a stable environment for precise financial and operational planning, in addition to enhancing the competitiveness of First Mills’ products in the local market. It also enables continued investment in efficiency and future projects.

Commenting on the company’s financial performance, he stated that despite seasonal revenue pressure due to the absence of Ramadan higher sales, the company achieved a larger net profit. This was supported by strong cost management and improved operating margins, the CEO noted.

Flour sales rose 5.7%, driven by strong demand for small-size packages across wholesale and retail channels, Ababtain said, adding that the company also expanded distribution of value-added small packs with higher margins.

Bran and feed segments witnessed seasonal demand declines during spring, Ramadan, and rain periods, which is an annual trend. However, the impact was limited by solid demand for other product lines.

Ababtain added that this temporary drop is unlikely to persist, as demand gradually recovers and prices improve, especially in the bran segment, which showed positive signs by quarter-end.

He noted that the flour and baked goods market remains highly competitive. Nevertheless, First Mills maintained performance through product diversification and greater operational efficiency, which bolstered strong profit margins.

The company has a clear strategy to expand its product range and develop value-added offerings to strengthen its market position.

First Mills posted a net profit of SAR 131.1 million, a 6% year-on-year (YoY) increase in H1 2025, up from SAR 123.2 million. Profits in Q2 rose 13% YoY to SAR 51.4 million, according to Argaam’s data.