Fourth Milling Company (“MC4” or the “Company”), a leading producer of flour and its derivatives in the Kingdom of Saudi Arabia, has announced its financial results for the three-month and six-month periods ended 30 June 2025.
Q2-2025 Performance
MC4 delivered a steady performance in Q2 2025, with net revenue rising by 2.8% year-on-year to SAR 140.6 million, compared to SAR 136.8 million in Q2 2024. The growth was primarily driven by a 6.2% increase in flour sales, supported by strong demand across multiple product categories. This was partially offset by a 3.4% decline in the feed and bran segment, largely due to seasonal adjustments and strategic product prioritization.
Gross profit increased by 9.1% year-on-year to SAR 62.4 million, supported by improved margins from product mix optimization and operational efficiencies. Net profit after Zakat and tax grew by 2.7% to SAR 34.1 million, up from ASAR 33.1 million in the same period last year. Earnings per share stood at SAR 0.06 for the quarter. Profitability was underpinned by gross margin expansion of 2.6% (SAR 5.2 million), an additional SAR 0.72 million in income from Shariah compliant investment deposits and SAR 0.9 million uplift in profit. These gains were partially offset by a SAR 3.3 million increase in selling and distribution expenses and an SAR1.6 million rise in general and administrative costs.
Quarter-on-quarter, net profit decreased by 35.4%, primarily due to lower revenue driven by seasonal factors. The preceding quarter (Q1 2025) included the month of Ramadan, which typically drives elevated flour consumption.
H1 2025 Performance
For the six-month period ending 30 June 2025, MC4 reported revenue of SAR 310.7 million, an increase of 2.8% from SAR 302.4 million in H1 2024. The increase was led by strong flour sales across both multiple channels. Net profit for H1 2025 reached SAR 86.7 million, marking a 6% year-on-year increase.
This was supported by a SAR 8.3 million increase in revenue, SAR 2.9 million reduction in deferred tax liabilities, and SAR 2.0 million increase in income from Shariah-compliant deposits. These positive drivers were partially offset by a SAR 7.7 million increase in other operating expenses.
Khalid Al Maktary, CEO of Fourth Milling Company, said: “Our Q2 and half-year results reflect the strength of our core flour business and our ongoing focus on operational efficiency. Despite seasonal headwinds, we maintained solid profitability while continuing to optimize our product mix and strengthen our retail leadership. Our FOOM brand remains the market leader in the consumer pack flour segment, and we are investing further to enhance our competitive edge.
We also continue to execute on the production capacity expansion approved earlier this year, while laying the groundwork for global market entry following the GFSA export authorization. These initiatives not only broaden our growth horizon but also reinforce our commitment to operational excellence and customer trust.”
Outlook
MC4 expects growth momentum to continue in the second half of 2025, supported by its resilient business model, strong customer base, and expansion plans. The Company is currently executing its SAR 265 million investment in Al-Kharj, which will increase flour production capacity by 750 tons per day and establish a 240-ton-per-day feed mill. This project supports MC4’s strategic goals of expanding capacity, improving product availability, and entering global markets following the General Food Security Authority’s export authorization.
