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First Milling Co. Earnings Release 2024
53321_rns_2024-10-22_3b653d1a-a84e-4671-bbed-b827528e5acf.pdf
Earnings Release
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FIRST INBILS MILLS
First Milling Co.
Q3/9M' 2024 Earnings Release
Issued by Investor Relations Department – October 2024
First Mills – Q3/9M' 2024 Earnings Release
First Mills Announcement of Interim Financial Results for the Period Ending on 30-09-2024 [Nine Months]
- Q3 Financial Highlights:
| List | Current Quarter | Similar Quarter for Previous Year | % Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 261,212,915 | 248,139,910 | 5.3% | 242,347,690 | 7.8% |
| Gross Profit (Loss) | 111,541,189 | 100,404,368 | 11.1% | 100,380,376 | 11.1% |
| Operational Profit (Loss) | 77,840,443 | 70,730,636 | 10.1% | 63,837,171 | 21.9% |
| Net profit (Loss) | 61,278,490 | 54,037,524 | 13.4% | 45,507,333 | 34.7% |
| Total Comprehensive Income | 46,881,948 | 53,616,960 | -12.6% | 42,518,841 | 10.3% |
| All figures are in (Actual) Saudi Arabia, Riyals |
- Year-to-Date (9 Months) Highlights:
| Element List | Current Period | Similar Period for Previous Year | % Change |
|---|---|---|---|
| Sales/Revenue | 780,009,200 | 717,644,160 | 8.7% |
| Gross Profit (Loss) | 337,475,506 | 308,541,435 | 9.4% |
| Operational Profit (Loss) | 236,062,946 | 213,030,786 | 10.8% |
| Net profit (Loss) | 184,507,448 | 162,703,266 | 13.4% |
| Total Comprehensive Income | 170,690,892 | 163,524,893 | 4.4% |
| Total Shareholders’ Equity (after Deducing Minority Equity) | 876,733,672 | 840,923,646 | 4.3% |
| Profit (Loss) per Share | 3.32 | 2.93 | 13.4% |
| All figures are in (Actual) Saudi Arabia, Riyals |
| Element List | Explanation |
|---|---|
| Sales (Revenues) | |
| Q3' 24 Vs. Q3' 23 | Revenue grew by 5.3% to SAR 261.2 million in the current quarter, recording an increase of SAR 13.1 million compared to SAR 248.1 million for the same quarter last year, with growth mainly driven by the following: |
1) Sales growth across all product categories was driven by a strong product mix, increased volume, as well as the continuous rise in small-pack sales volume, driven by the success of the Company's strategy in increasing its geographic coverage across the Kingdom.
2) Gross Profit increased by 11.1% to SAR 111.5 million, up from SAR 100.4 million in the same quarter last year, primarily driven by higher revenue growth while maintaining cost leadership, competitive feed prices, and lapping a higher cost of raw materials in the same quarter last year.
3) Operating Expenses remained in line compared to the same quarter last year, with a slight increase in expenses attributed to supporting the revenue growth.
As a result of the above, net profit increased by SAR 7.2 million compared to the same quarter last year, with the net profit margin rising to reach a solid 23.5% of revenue, while earnings per share amounted to SAR 1.10 in the current quarter, compared to SAR 0.97 for the same quarter last year, representing an increase of 13.4%. |
| Net Profit
Q3' 24 Vs. Q3' 23 | Net profit grew by 13.4%, SAR 7.2 million, compared to the same quarter last year, reaching SAR 61.3 million from SAR 54 million. This growth is primarily driven by the following factors:
1) Sales growth across all product categories.
2) Continued strong growth in small-pack product volume, which increased by 48%, driven by the expansion of the Company's distribution network and increased geographic coverage, leading to an improvement in the Company's product mixes with higher margins.
3) Maintaining cost leadership in line with sales growth. |
| Element List | Explanation |
|---|---|
| Sales (Revenues) | |
| Q3' 24 Vs. Q2' 24 | Revenue increased by 7.8% to SAR 261.2 million in the current quarter, up by SAR 18.9 million compared to SAR 242.3 million in the previous quarter this year. This growth was mainly driven by the following: |
1) Feed sales witnessed robust double-digit growth of 19.3%, driven by increased demand, while Flour continued to grow by 13.9%, supported by the back-to-school trends and seasonal consumption patterns. However, Bran sales decreased by 28.9% compared to the previous quarter due to the Company's decision to prioritize Feed production to meet rising demand.
2) Gross Profit increased by 11.1%, reaching SAR 111.5 million compared to SAR 100.4 million in the previous quarter, primarily driven by higher revenue growth while maintaining cost leadership and the competitiveness of feed prices. |
| Net Profit
Q3' 24 Vs. Q2' 24 | Net profit increased by 34.7% in the current quarter, reaching SAR 61.3 million, up by SAR 15.8 million from SAR 45.5 million in the previous quarter. This growth was mainly driven by the following:
1) An SAR 18.9 million increase in revenue attributed to higher sales in Feed and Flour, improved product mixes, and better pricing management.
2) Enhanced cost management, including distribution, selling, and manufacturing efficiencies during the period. |
| Element List | Explanation |
|---|---|
| Sales (Revenues) | |
| YTD’ 24 Vs. YTD’ 23 | Revenue increased by 8.7%, reaching SAR 780 million in the current period, up by SAR 62.4 million compared to SAR 717.6 million for the same period last year, with growth primarily driven by the following: |
1) Feed sales achieved robust double-digit growth of 18.2%, driven by increased demand and effective sales execution, while Flour maintained its growth momentum with a 7.9% increase, bolstered by improved utilization and record performance during the Ramadan season. However, Bran sales declined by 4.2% compared to the same period last year as a result of the Company's decision to prioritize Feed production to meet rising demand.
2) The Company's improved product mixes and the launch of the Durum Mill, which produces Semolina.
3) Gross Profit increased by 9.4%, reaching SAR 337.5 million compared to SAR 308.5 million in the same period last year. This was mainly driven by higher revenue growth while maintaining cost leadership, the launch of new projects, and improved product mixes.
As a result of the above, the net profit increased by SAR 21.8 million compared to the same period last year, with the margin holding steady at a solid 23.7% of revenue, while earnings per share amounted to SAR 3.32 in the current period, compared to SAR 2.93 for the same period last year, representing an increase of 13.4%. |
| Net Profit
YTD’ 24 Vs. YTD’ 23 | Net profit increased by 13.4% in the current period compared to the same period last year, reaching SAR 184.5 million, up by SAR 21.8 million from SAR 162.7 million, mainly due to the following:
1) The increase in revenue by SAR 62.4 million as a result of the growth in the sales of Feed and Flour along with the improvement in the product mixes, pricing, and the launching of new products.
2) Continued growth in small-pack products yielding better margins. |
| Element List | Explanation |
|---|---|
| 3) Ongoing efficiency improvement through maintaining cost leadership. | |
| 4) Optimization of cash management by improving interest income from the Shariah-compliant Murabaha deposits. | |
| Statement of the Type of External Auditor's Report | Unmodified conclusion |
| Reclassification of Comparison Items | Not applicable |
| Additional Information | First Mills' revenue contribution by category: |
| • Flour sales reached 57.6% in the current quarter, up from 55.5% in the same quarter of last year (57% YTD 2024 Vs. 57.4% in the same period of last year) - due to sustainable, profitable growth driven by capacity expansion and double-digit growth in small-pack products. | |
| • Feed sales reached 30.7% in the current quarter, up from 32.2% in the same quarter of last year (28.9% YTD 2024 Vs. 26.6% in the same period of last year) - mainly due to the competitiveness of feed price and improved sales execution. | |
| • Bran sales reached 11.7% in the current quarter compared to 12.3% in the same quarter of last year (14.1% YTD 2024 Vs. 16% in the same period of last year) – The decrease is attributed to the Company's decision to prioritize Feed production to meet rising demand. | |
| • First Mills maintained healthy net profit margins of 23.7% in the current period compared to 22.7% in the previous year's same period. | |
| • In the current period, First Mills registered an installed wheat milling capacity utilization of 88%, an increase from 83% recorded during the same period last year due to the expansion work (Based on 365 Days). |
| Element List | Explanation |
|---|---|
| • The Company is on track to deliver on its key project upgrades and newly completed initiatives, enabling it to create outstanding products and better services for its clients. | |
| For more information, please contact the First Mills Investors Relations Department at the email: [email protected] |
- Other Financial Metrics & Ratios
| Element List | Current Quarter | Similar quarter for previous year | % Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Gross Profit Margin | 42.7% | 40.5% | 5.5% | 41.4% | 3.1% |
| Operational Profit Margin | 29.8% | 28.5% | 4.5% | 26.3% | 13.1% |
| Net profit Magrin | 23.5% | 21.8% | 7.7% | 18.8% | 24.9% |
| Element List | Current Period | Similar period for previous year | % Change | ||
| --- | --- | --- | --- | ||
| Gross Profit Margin | 43.3% | 43.0% | 0.6% | ||
| Operational Profit Margin | 30.3% | 29.7% | 2.0% | ||
| Net profit Magrin | 23.7% | 22.7% | 4.3% |
Financial Statements & Investor Presentation
The Condensed Consolidated Interim Financial Statements for the Period Ended 30-09-2024 will be available on the Company's Page on Tadawul and the dedicated Investor Relations Page on the following link:
Reports & Presentations – Financial Statements (Link)
A Conference Earnings Call for analysts and investors will be hosted on Wednesday 30th of October 2024 at 4:00 PM KSA Time. The Investor Presentation accompanying the call will be also available on the Investor Relations Page at:
Reports & Presentations – Earnings Call Presentations (Link)
--- ENDS ---
FIRST القطاط
MILLS الأولاد
The First Mills - Investor Relations Team can be reached for any further inquiries on the following:
Investor Relations Department
First Milling Company
Tel: (+966) 126615845 Direct or (+966) 920010375 In-direct
Email: [email protected]
Address: 22312 Jeddah, Al-Baghdadiya (Saudi Business Center) 8th Floor
www.firstmills.com
--- Disclaimer ---
All information included in this document is for general use only and has not been independently verified, nor does it constitute or form part of any invitation or inducement to engage in any investment activity, nor does it constitute an offer or invitation, or recommendation to buy or subscribe for any securities in the Kingdom of Saudi Arabia, or an offer or invitation or recommendation in respect of buying, holding or selling any securities of the Company.
First Milling Company does not warranty, express or implied, is made, and no reliance should be placed by any person or any legal entity for any purpose on the information and opinions contained in this document, or its fairness, accuracy, completeness, or correctness.
This document may include statements that are or may be deemed to be, "forward-looking statements" with respect to the Company's financial position, results of operations, and business. These views are based on current assumptions which are subject to various risks and may change over time. Information on the Company's plans, intentions, expectations, assumptions, goals, and beliefs are for general update only and do not constitute or form part of any invitation or inducement to engage in any investment activity, nor does it constitute an offer or invitation or recommendation to buy or subscribe to any securities in any jurisdiction, or an offer or invitation or recommendation in respect of buying, holding or selling any securities of the Company. No assurance can be given that future events will occur, that projections will be achieved, or that the Company's assumptions are correct. Actual results may differ materially from those projected.
This document is strictly not to be distributed without the explicit consent of First Milling Company management under any circumstances.