First Milling Co. — Interim / Quarterly Report 2023

Oct 31, 2023

First Milling Co. announces its Interim Financial Results for the Period Ending on 2023-09-30 ( Nine Months )

2283 · 31/10/2023 08:25:31 · Announcement #76539 · View on Saudi Exchange

First Milling Co. announces its Interim Financial Results for the Period Ending on 2023-09-30 ( Nine Months )

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	248,140	237,837	4.33	213,957	15.98
Gross Profit (Loss)	100,404	103,763	-3.24	87,994	14.1
Operational Profit (Loss)	70,731	74,766	-5.4	51,333	37.79
Net Profit (Loss) after Zakat and Tax	54,038	63,490	-14.89	34,908	54.8
Total Comprehensive Income	53,617	74,026	-27.57	40,830	31.32
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	717,644	687,051	4.45
Gross Profit (Loss)	308,541	310,008	-0.47
Operational Profit (Loss)	213,031	218,452	-2.48
Net Profit (Loss) after Zakat and Tax	162,703	197,196	-17.49
Total Comprehensive Income	163,525	207,732	-21.28
Total Share Holders Equity (after Deducting Minority Equity)	840,924	828,412	1.51
Profit (Loss) per Share	2.93	394.39
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	Net Profit recorded SAR 54.0 million in the current quarter compared to SAR 63.5 million in the same quarter of last year. Excluding the impact of interest cost the like-for-like profit would be in line with the same Net Profit levels of last year. The quarterly difference is mainly due to the following reasons:

1) Revenue increased by 4.3% which is driven by the growth in Flour by 10% and in Feed by 16%, while Bran declined by 30% due to prioritizing the increase of intake in the feed production to fulfill the growth demand.

2) Gross Profit decreased by 3.2%, reaching SAR 100.4 million compared to SAR 103.8 million in the corresponding quarter last year mainly driven by the competitiveness of feed prices.

3) Operating Expenses remained at the same level as last year same quarter. The increase in selling and distribution costs to support fulfilling the demand outside catchment areas was compensated by cost control in general and administrative expenses.

4) Net financing cost increased by SAR 8 million for Q3 2023 vs Q3 last year as a result of the addition of long-term financing to the Company's financial statements following the completion of the merger with the parent company Al Raha Al Safi, and started being recorded in First Mills books on 15/09/2022. Excluding the impact of these interest costs, the like-for-like same-quarter net profit would be approximately in line with last year.

As a result of the above, the net profit margin was 21.8% compared to 26.7% for the same quarter of last year.The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is Net profit increased by 54.8% in the current quarter compared to the previous quarter, reaching SAR 54.0 million, with an increase of SAR 19.1 million compared to SAR 34.9 million, and mainly driven by the following:

1) The increase in revenue by SAR 34.2 million as a result of the increase in the sales of Flour by 11%, the increase in Feed by 62%, and the improvement in the product mixes and better pricing.

2) The improved efficiency in managing the Company's costs such as the distribution, selling, and manufacturing costs for the period.The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is Net Profit recorded SAR 162.7 million in the current period compared to SAR 197.2 million in the corresponding period of the previous year. Excluding the impact of interest cost the like-for-like net profit would be in line with the same levels as last year's same period. The differences that mainly affected the profitability for the period in comparison to the same period of last year are as follows:

1) Revenue increased by 4.5% which is driven by the growth in Flour by 8% compared to last year as well as the increase in Bran by 7% which was driven by new customer acquisitions and greater geographic coverage.

2) Net financing cost increased by approximately SAR 34 million for the period in comparison to the same period last year as it is mainly attributed to the added long-term financing to the Company's financial statements, which began to be recorded in First Mills' books on 15/09/2022 after the completion of the merger with the parent company "Al Raha Al Safi". Excluding the impact of these interest costs, the like-for-like same period's net profit would be approximately in line with last year.

3) The additional financial income of AR 3.5 million from the Murabaha Shariah Compliant Deposits.Statement of the type of external auditor's report Unmodified conclusionReclassification of Comparison Items Not applicableAdditional Information First Mills' revenue contribution by type of goods is as follows:

55.5% Flour Sales in Q3, 2023 compared to 52.7% in the same quarter of last year (57.4% YTD 2023 Vs. 55.5% in the same period of last year) - mainly driven by the product mixes and the double-digit growth in retail channels.

32.2% Feed Sales in Q3, 2023 compared to 29.0% in the same quarter of last year (26.6% YTD 2023 Vs. 28.8% in the same period of last year) - mainly due to the competitiveness of feed prices and lower volume consumptions.

12.3% Bran Sales in Q3, 2023 compared to 18.3% in the same quarter of last year (16.0% YTD 2023 Vs. 15.7% in the same period of last year) - mainly driven by the growth in volume as a result of acquiring new customers and the expansion in new geographical areas.

First Mills Q3 2023 capacity utilization was 97.2%, increasing by 7% vs Q3 last year.Attached Documents  

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