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Arabian Mills for Food Products Co. announces its Interim Financial results for the Period Ending on 2024-09-30 ( Nine Months )

2285
ARABIAN MILLS
-0.91 %
1446/05/03     05/11/2024 16:06:25

Element ListCurrent QuarterSimilar quarter for previous year%ChangePrevious Quarter% Change
Sales/Revenue 244,342,723228,179,2477.083226,566,4407.845
Gross Profit (Loss) 113,355,146114,180,551-0.722106,837,9426.1
Operational Profit (Loss) 76,719,79389,694,271-14.46567,649,40013.407
Net profit (Loss) 54,913,23368,489,366-19.82246,123,39119.057
Total Comprehensive Income 54,565,23368,489,366-20.3345,990,39118.644
All figures are in (Actual) Saudi Arabia, Riyals


Element ListCurrent PeriodSimilar period for previous year%Change
Sales/Revenue 709,133,739628,049,81612.91
Gross Profit (Loss) 330,460,617296,613,87711.411
Operational Profit (Loss) 222,085,526222,306,451-0.099
Net profit (Loss) 156,421,407140,316,11011.477
Total Comprehensive Income 156,107,407140,316,11011.254
Total Shareholders Equity (after Deducting Minority Equity) 979,073,850759,270,93028.949
Profit (Loss) per Share 3.052.73
All figures are in (Actual) Saudi Arabia, Riyals


Element ListAmountPercentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value --
All figures are in (Actual) Saudi Arabia, Riyals


Element ListExplanation
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is Revenues of the Arabian Mills Company increased by 7.08% to reach SAR 244.3 million in the current quarter, representing a growth of SAR 16.2 million compared to SAR 228.1 million in the corresponding quarter of the previous year. This growth is primarily attributed to:

1. Growth in the company's sales across all product segments and the success of the company's strategy to expand partnerships with existing customers, acquire new customers, and increase promotional campaigns for the company's products.

2. The success of the company's plans to balance operating expenses in line with the growth in all of the company's segments, including sales and marketing campaigns.

Total volume increase by 8.1%.

Flour Revenue increased by 4.7%, Bran by 5% and Feed by 18.1%.

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 decreased from SAR 68.4 million to SAR 54.9 million, representing a 19.82% decline and a SAR 13.5 million decrease. This is primarily due to:

1. The increase in Raw material related to Poultry feed.

2. The company's expanded strategy and increased market competition.

3. The increase in sales and distribution expenses is due to market expansion and rising administrative costs. Selling and marketing expenses increased by 57.9% in the current quarter compared to the same quarter last year. This is primarily attributed to increased transportation and distribution costs, as well as efforts to strengthen the company's business, consumer relations, and poultry feed (a new product).

4. Treasury income of SAR 0.8 million earned on bank deposits vs SAR 6.4 million for the same period last year due to utilization of the excess cash to reduce Loan liability.

The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is The Arabian Mills Company reported a 7.85% increase in revenue, reaching SAR 244.3 million in the current quarter. This represents a growth of SAR 17.8 million compared to the previous quarter's SAR 226.6 million. This growth is primarily driven by the following factors:

1. Increased demand for the company's products, fueled by promotional and marketing campaigns.

2. Flour sales increased by 15.2% to SAR 138.8 million , up from SAR 120.5 million in the previous quarter, representing an increase of SAR 18.3 million.

3. Feed sales surged by 12.9% to SAR 51.5million, up from SAR 45.6 million in the previous quarter, reflecting an increase of SAR 5.9 million.

It is worth noting that, selling and marketing expenses decreased in the current quarter by -12.66% compared to the previous quarter mainly on account of decrease in Transportation and Distribution and promotional activities compared to previous quarter.

The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is Net profit increased by 19.6% in the current quarter compared to the previous quarter, reaching SAR 54.9 million. This represents an increase of SAR 8.8 million compared to the previous quarter's SAR 46.1 million. This growth is primarily attributed to:

1. A 7.85% increase in the company's revenue to SAR 244.3 million, compared to SAR 226.5 million in the previous quarter, representing an increase of SAR 17.8 million.

2. Growth in sales across all product segments, market expansion, increased customer base, and improved operational efficiency.

3. Selling and marketing expenses decreased in the current quarter by 12.66% compared to the previous quarter mainly on account of decrease in Transportation and Distribution and promotional activities compared to previous quarter.

The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is The Arabian Mills Company reported a 12.91% increase in revenue, reaching SAR 709.1 million during the current period. This represents a growth of SAR 81.08 million compared to the SAR 628.1 million recorded in the corresponding period of the previous year.

The Company’s revenue for the current period increased by 12.91% compared to the similar period last year, this was mainly on account of 2.78% Flour, 19.85% Bran and 42.87% Feed revenue increases.

This growth is primarily driven by the following factors:

1. Increased sales of the company's products driven by marketing efforts, a growing customer base, market expansion, and a wider product range.

2. The company's focus on fostering strategic partnerships with key customers and providing sales incentives tailored to customer and market needs.

3. Increase of 42.87% in the Feed segment with the help of the New Poultry Feed product.

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 increased by 11.48% during the current period, reaching SAR 156.4 million compared to SAR 140.3 million in the corresponding period, representing an increase of SAR 16.1 million. This is primarily due to the following factors:

1. Decreased financing costs as a result of the company's efforts to reduce debt.

2.  Increased revenue sources and optimization of surplus cash: Income of SAR 2.78million earned on bank deposits made.

3. Continuous improvement in product costs, administrative, and operating expenses to align with the scale of operations.

4. Decrease of Zakat expense in the current period by SAR 5.74 million compared to the similar period in last year.

Statement of the type of external auditor's report Unmodified conclusion
Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) None
Reclassification of Comparison Items Not applicable
Additional Information nothing

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.

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