First Milling Co. announces its Interim Financial Results for the Period Ending on 2023-06-30 ( Six Months )

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	213,957	206,847	3.44	255,547	-16.27
Gross Profit (Loss)	87,994	94,884	-7.26	120,143	-26.76
Operational Profit (Loss)	51,333	66,160	-22.41	90,967	-43.57
Net Profit (Loss) after Zakat and Tax	34,908	61,253	-43.01	73,758	-52.67
Total Comprehensive Income	40,830	61,253	-33.34	68,078	-40.02
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	213,957	206,847	3.44
Gross Profit (Loss)	87,994	94,884	-7.26
Operational Profit (Loss)	51,333	66,160	-22.41
Net Profit (Loss) after Zakat and Tax	34,908	61,253	-43.01
Total Comprehensive Income	40,830	61,253	-33.34
Total Share Holders Equity (after Deducting Minority Equity)	863,342	714,427	20.84
Profit (Loss) per Share	0.63	122.51
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	First Mills Recorded Net profit in Q2 of SAR 34.9 mln compared to SAR 61.2 million in the previous year.

The Company’s revenue increased in flour by 9% vs LY and 20% in retail channel driven by the Company’s “ALOULA” brand which contributing positively to the net profit.

Bran revenue increased by 20% driven by acquiring new customers and increasing geographic coverage.

Increase in financing cost by SAR 13 mln for Q2 2023 vs Q2 Last year mainly as a result of adding long-term financing to the Company's financial statements, which began to be recorded in First Mills books in 15/09/2022 after completion of the merger with the parent company Al Raha Al Safi

One of the 2.4M costs related to the listing of the Company’s shares on Tadawul.

Provision of spare parts in line with the new policy that the Company started implementing in Q4 2022.

The increase in Selling and Distribution costs is driven by internal transport of finished goods supporting Jeddah branch during Mill C shutdown for capacity upgrade by 83%.

Increase in Insurance cost and maintenance cost as the Company advances maintenance activities to Q2 during the lower production period of Feed due to the prolongment of grazing season and Mill C shutdown.The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is The net profit recorded SAR 34.9 mln vs SAR73.8 mln in Q1 of the financial year 2023, the difference in profit is mainly driven by: -

Lower sales by SAR 42 mln as a result of stopping Mill C for capacity upgrade by 83% and due to a seasonal change in consumption patterns in Flour post Ramadan and in Feed due to abnormal weather condition and prolongment of grazing season.

Increase in Distribution cost to support Jeddah branch during the shutdown of Mill C.

One off 2.4M cost related to the listing of the Company’s shares on Tadawul.The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is First Mills recorded H1 Net Profit at SAR 108.7 mln, lower than the previous year's SAR 133.7 mln mainly attributed to the interest costs, which began to be recorded in First Mills books starting 15/09/2022 after completion of the merger with the parent company Al Raha Al Safi. Excluding the impact of financing costs, the like-for-like H1 Net profit of SAR 108.7 million remains in line with the previous year.

Details of the key drivers of profitability in H1 2023 vs H1 2022 are as follows: -

Our revenue increased in flour by 7% vs LY and 20% in retail channel driven by our “ALOULA” brand which contributing positively to the net profit.

Bran revenue increased by 31.9% driven by acquiring new customers and increasing geographic coverage.

Increase in financing cost by SAR 24.7 mln for H1 2023 vs H1 last year as mainly attributed to adding long-term financing to the Company's financial statements, which began to be recorded in First Mills books in 15/09/2022 after completion of the merger with the parent company Al Raha Al Safi

One of the 2.4M cost related to the listing of the Company’s shares on Tadawul.

Provision of spare parts in line with the new policy that the Company started implementing in Q4 of the financial year 2022.

The increase in Selling and Distribution costs is driven by internal transport of finished goods supporting Jeddah branch during Mill C shutdown for capacity upgrade by 83%.

Increase in Insurance cost and maintenance cost as we advance maintenance activities to Q2 during the lower production period of Feed ~ SAR 3mln.Statement of the type of external auditor's report Unmodified conclusionReclassification of Comparison Items Not applicableAdditional Information General Comments:

We improved our efficiency by increasing Q2 capacity utilization by +7% vs Q2 22 reaching 99%.

We are on track with our key projects that enable us to create outstanding products and services. Successfully commissioned a Premix Line and Pesa Mill with (150 tons wheat milling capacity per day)

We are enhancing market leadership and winning in B2B channel, and we recorded strong growth in retail channel for the first 6M by 20% vs LY.

Flour sales increased by 7% in H1 and 9% in Q2 year on year.

Feed sales declined by 14.1% in H1 and 16.8% in Q2 year in year due to lower levels of feed consumption due to the longer grazing period.

Bran recorded a growth of 31.9% in H1 and 20.3% in Q2 compared to last year driven by acquiring new customers and expanding geographically.

We received the approval from General Food Security Authorities (GFSA) to operate PESA mill and Pre-Mix plant.

Based on the resolution of the Ordinary General Assembly of First Mills Company held on March 06, 2023, regarding the authorization given to the Board of Directors to distribute the interim dividends for the year 2023, the Board of Directors resolved and approved the distribution of the interim (half yearly) dividends to shareholders for the period of the first six months of 2023 ended on June 30, 2023.

The Condensed Consolidated Interim Financial Statements for the Six Months ended 30th June 2023 will be available through the following link on First Mills Website

www.Firstmills.com

The conference call for analysts and investors will be on 1st of August 2023 at 1:00 p.m. KSA time and the presentation will be available on First Mills website within the Investors sectionAttached Documents

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