Riyadh – Mubasher: The net profits after Zakat and tax of First Milling Company (First Mills) declined by 18.73% year-on-year (YoY) to SAR 108.66 million in the first half (H1) of 2023 from SAR 133.70 million.
First Mills posted revenues amounting to SAR 469.50 million in H1-23, up 4.54% from SAR 449.21 million in the year-ago period, according to interim financial results.
Earnings per share (EPS) plummeted to SAR 0.63 in the first six months (6M) of 2023 from SAR 122.51 in H1-22.
Income Statements for Q2-23
During the second quarter (Q2) of 2023, the company recorded 43.01% lower net profits after Zakat and tax at SAR 34.90 million, compared to SAR 61.25 million in the year-ago period.
The revenues reached SAR 213.95 million in the April-June 2023 period, higher by 3.44% than SAR 206.84 million a year earlier.
On a quarterly basis, the Q2-23 net profits shrank by 52.67% from SAR 73.75 million in Q1-23, while the revenues dropped by 16.27% from SAR 255.54 million.
Abdullah Ababtain, CEO of First Mills, commented: "In H1-23, First Mills demonstrated its continued ability to drive revenue growth from a firm foundation of large-scale production capabilities, high utilisation rates, and efficient operations.”
“While we acknowledge the challenges to net profit in Q2-23, we believe we have the suitable strategy and execution plan in place to deliver on our key projects - such as the PESA Mill, the Pre-Mix Plant, Durum Mil, and Mill C expansion in the Jeddah Plant – which we collectively expect to increase our capacity, boost our product variety, and have a positive long term financial impact,” Ababtain noted.
He mentioned: “At the same time, First Mills is actively managing costs to improve its financial position by reducing net debt and progressively deleveraging the balance sheet, allowing for greater financial flexibility to fund future endeavors.”
“Looking ahead, we are keen to explore various avenues for future growth. As part of our strategic roadmap, we are excited to introduce new product categories, which will further diversify our portfolio to cater to a wider market,” the CEO said.
Dividends for H1-23
The board of First Mills approved interim cash dividends distribution of SAR 76.06 million for H1-23.
Representing 13.70% of the share nominal value, a dividend of SAR 1.37 per share will be disbursed among 55.50 million eligible shares.
The eligibility and payment dates for the dividends will be 31 July and 14 August 2023, respectively.
