Arabian Mills posts strong results backed by flour, feed; investments reach SAR 461M

Arabian Mills for Food Products Co.’s (Arabian Mills) reported strong financial results for the first nine months of 2025, with net profit rising by 15.1% to SAR 180.1 million, while total revenue increased to SAR 724.7 million, reflecting 2.2% growth year-on-year (YoY), CEO Rohit Chugh stated.

In an interview with Argaam, Rohit explained that promotional activities supported flour business revenues, which grew by 7.2%, or SAR 27.9 million, supported by a robust 90.4% growth in retail sales. The business segment also recorded a 2.9% increase in revenue.

Furthermore, the feed segment delivered an additional growth of SAR 11 million, benefiting from momentum in the livestock sector, he said. Meanwhile, lower financing costs-down by approximately SAR 20 million, along with a 59% hike in Shariah-compliant deposits, further boosted profitability by contributing SAR 15.6 million to total revenue, the CEO added.

Mr. Rohit highlighted that the company successfully maintained stable general and administrative expenses despite the revenue, achieved through disciplined cost control and enhanced spending efficiency. This positively impacted on the net profit, operating margins, and the company’s financial position.

Arabian Mills holds around 28% of the Saudi flour market The company’s current wheat milling capacity exceed 4,870 tons per day across three operational regions, namely Riyadh, Jizan, and Hail, with surpass capacities of 3,070, 1,200, and 600 tons respectively. The company also produces 600 tons of feed per day, he emphasized.

Regarding strategic business developments and investments, the company approved major expansion projects in Riyadh and Hail with a total investment of SAR 461 million.

These investments include the construction of a new flour mill in Riyadh with a production capacity of 800 tons per day, and upgrading the Hail flour mill with a capacity of 150 tons per day, bringing the company’s total flour production capacity to exceed 5,820 tons/day, with a total investment of SAR 361 million.

The amount also covers establishing a new feed mill in Riyadh with a production capacity of 400 tons/day, which will increase total feed capacity to 1,000 tons/day, with an investment of SAR 57 million. This also includes the construction of new warehouses in Riyadh to enhance storage and logistics, with an investment of SAR 43 million.

Implementation of these projects is scheduled to begin in Q4 2025 and Q1 2026, with commercial operations set to gradually commencing between early 2027 and early 2028. The expansions will be financed through a mix of available cash and Shariah-compliant banking facilities.

Mr. Rohit, emphasized that, in alignment with the company’s expansion strategy, Arabian Mills continues to invest in developing the workforce capabilities through training programs and professional certifications, attracts specialized expertise, and ongoing enhancement of the work environment to ensure workforce readiness for upcoming projects and new product launches.

On new products, Arabian Mills revealed plans to launch a range of premium products under its “Master Mills” brand, featuring 28 products, which expected to strengthen the company’s presence in the high-end food segment locally and regionally.

Regarding dividends policy, Rohit confirmed that the company continuously evaluates its options to create sustainable shareholder value. He noted that expansion projects and the use of cash and banking facilities are part of a carefully planned growth strategy, and that reviewing liquidity and the financial position at the end of the year is a routine step aimed at supporting the company’s financial strength. The company continues to implement its growth plans and develop strategic projects, with a commitment to informing shareholders promptly of any important updates.