Argaam Charts spotlights Saudi milling firms post-2025 results

In-depth: Saudi-listed milling firms post-2025 results

The four Saudi-listed milling companies announced their financial results for 2025, indicating a clear divergence in performance among First Milling Co. (First Mills), Arabian Mills Co., Modern Mills Co., and Fourth Milling Co. (MC4) in terms of profitability, dividends, and leverage.

First Mills continued to lead peers in terms of both revenue and net profit, demonstrating consistent performance over the past two years.

Meanwhile, MC4 recorded the highest profit growth, while also maintaining the strongest net profit margin (NPM). Modern Mills continued to trail the market leader in terms of revenue, but lagged in net profit, where Arabian Mills outperformed it.

In terms of revenue, First Mills and Modern Mills both exceeded the SAR 1 billion threshold. First Mills topped peers, posting SAR 1.14 billion in revenue for 2025, reflecting a year-on-year (YoY) increase of nearly 9%, supported by its four-plant operating network and an annual production capacity of 1.8 million tons.

Modern Mills ranked second in terms of revenue for 2025, backed by its three plants and a production capacity of about 1.5 million tons per year, reinforcing its position among top sector performers.

Gross profit margins (GPM) across the four listed companies ranged between 38% and 47% during 2025. Arabian Mills recorded the highest GPM at about 47.19% by the end of 2025, supported by stable operating efficiency across its three plants in Riyadh, Hail, and Jazan, along with a strong focus on flour sales.

For the same year, MC4 came in next at 46.4%, while Modern Mills reported the lowest GPM at approximately 37.37%.

MC4 recorded the highest NPM among peers, reaching 30.4% by the end of 2025, given its zero leverage. Meanwhile, NPMs for the other three sector players ranged between 21% and 24% for the same year.

First Mills achieved the highest revenue growth among peers of 9% for 2025. This was driven by a 13% uptick in the feed segment, supported by expanded production capacity following the acquisition of Al Manar Feed Co. Ltd.

MC4 ranked second with 7% topline growth, backed by the expansion of its flour segment.

MC4 experienced the highest profit jump among peers at 17% by 2025-end, lifted by some one-offs recorded last year. Excluding these non-recurring items, the company still led with 12% growth, driven by higher sales and a SAR 5 million reduction in Zakat compared with 2024.

Arabian Mills came in second with a 11% profit hike in 2025, thanks to a SAR 13 million decline in FCs, partially offset by an increase in financing income.

On the other hand, during 2025, MC4 maintained a zero debt-to-asset ratio, compared with ratios ranging from 30% to 50% among its peers, standing as the sole player with zero debt obligations.

The company recently unveiled a new mill project in Al Kharj, which will have a production capacity of 750 tons per day. Additionally, it plans to establish a feed production plant with a daily output capacity of 240 tons. The estimated cost of both facilities is SAR 265 million. MC4 had earlier revealed that it would resort to a mix of credit facilities and operational cash flows for funding, ensuring financial flexibility while supporting its expansion plans.

In terms of price-to-earnings (P/E) multiples, Arabian Mills trades at the lowest multiple of 8.3x, while Modern Mills commands the highest multiple at around 10.4x. Both Arabian Mills and MC4 trade at P/E multiples of approximately 9.5x.

All four sector players offer cash dividends above 6%, excluding Arabian Mills (2.5%).