Saudi’s Fourth Milling Co. announces US$71M expansion to boost flour, feed output in Al-Kharj

SAUDI ARABIA – Fourth Milling Co. (MC4), one of Saudi Arabia’s top flour and animal feed producers, has announced a major expansion initiative valued at SAR 265 million(US$71 million), with plans to construct a new flour mill and feed plant at its Al-Kharj site in Riyadh.

Approved by the company’s board on April 30, the project will raise the site’s total flour capacity to 1,350 tons per day with an additional 750 tons/day from the new mill.

The feed plant will contribute 240 tons/day, significantly enhancing MC4’s role in strengthening the Kingdom’s food and feed supply chains.

This strategic investment aims to meet the surging demand from bakeries, food processors, and livestock producers nationwide, aligning with Saudi Arabia’s broader food security objectives.

The project has received approval from the General Food Security Authority (GFSA), reinforcing the government’s commitment to supporting investments that secure national food reserves and promote sustainable exports.

The GFSA recently sanctioned flour exports by licensed millers, including MC4, as long as domestic demand remains prioritised, a policy shift in line with the Saudi Vision 2030 agenda to improve local competitiveness and diversify markets.

Financing for the development will be secured through a mix of Shariah-compliant bank facilities and internal funds.

Construction is set to begin in Q2 2025, subject to final regulatory approvals. The feed mill is expected to become operational by the second half of 2026, followed by the flour mill in the second half of 2027.

According to the company, trial production runs will precede full-scale operations, with financial gains projected from the respective go-live dates.

MC4 currently operates strategically located facilities in Dammam, Madinah, and Al-Kharj, serving more than 80% of the Kingdom’s population. Its existing operations boast a daily flour milling capacity of 3,150 tons and feed output of 450 tons.

The company also leads the consumer flour market under its flagship FOOM brand and upholds rigorous quality standards, holding ISO 17025 accreditation.

The investment plans come after the company recently announced its highest-ever annual revenue of approximately US$170 million (SAR 629 million) for the full year ended 31 December 2024 (FY 2024), reflecting a 12.7% year-on-year increase.

The company also reported a net profit surge of 19.7% year-on-year, reaching US$46.17 million (SAR 171 million), fueled by strong sales growth, improved production efficiency, and market expansion.

In the fourth quarter of 2024 (Q4 2024), MC4 registered US$44.96 million (SAR 167 million) in revenue, up 13.1% from Q3 2024. Its quarterly net profit was US$11.34 million (SAR 42 million), marking a 19.7% increase compared to the previous quarter.

Operational profit for the full year climbed 21.1% to US$53.46 million (SAR 198 million), while gross profit rose 19.7% to US$79.65 million (SAR 295 million).

The company attributes this performance to a 16% year-on-year increase in sales volumes, underpinned by MC4’s expanded geographic coverage and deeper market penetration.

The company’s flour category grew 15%, while feed and bran products recorded a 12% increase in sales volumes over the year.

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