Arabian Mills reports strong Q3 2025 earnings on flour, feed momentum

SAUDI ARABIA – Arabian Mills for Food Products Co. posted a solid rise in third-quarter earnings, supported by firmer demand in its flour segment and strong gains in feed sales, according to the company’s Nov. 6 financial statement.

The miller reported a net profit of SAR 62.5 million (US$16.67 million) for the three months ending September 30, a 14% increase from the same period in 2024.

Revenue for the quarter reached SAR 246.5 million (US$65.7 million), just above last year’s level. The company attributed the improvement to a sustained lift in consumer flour sales, where revenue grew 4.4%, supported by an expanded rollout of small retail packs in modern trade and wholesale channels.

The strategy has helped millers capture growing household demand as Saudi consumers increasingly shift toward packaged, branded staple products.

Feed revenue rose significantly to SAR 6.29 million (US$1.68 million), a 13% year-on-year increase.

The company noted a 37% jump in livestock-related feed volumes, reflecting the wider growth trend in Saudi Arabia’s poultry and livestock sectors.

The Kingdom has been investing heavily in feed efficiency and domestic animal production as part of its broader food security targets, contributing to stronger market conditions for feed millers.

Bran sales, however, declined as Arabian Mills channeled more bran into its internal feed formulations.

This adjustment aligns with its ongoing strategy to strengthen the higher-value feed division, a segment that is becoming increasingly important for milling companies seeking diversified revenue streams amid fluctuating flour margins.

Operational efficiency was another driver of quarterly performance. Arabian Mills highlighted continued improvements in administrative and operating costs, noting that disciplined cost control has helped support margins even as commodity markets remain volatile.

Saudi millers have been navigating higher global freight and grain prices over the past two years, pushing companies to prioritize tighter expense management and operational optimisation.

For the first nine months of 2025, the company reported net profit of SAR 180 million (US$48 million), up 15% from SAR 156.1 million during the same period in 2024.

Year-to-date revenue grew 2.2% to SAR 724.7 million (US$193 million). This steady performance reflects the resilience of the Saudi milling sector, which continues to benefit from stable domestic consumption patterns and rising demand for animal feed driven by expanding livestock operations.

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