First Milling Co. announces its Interim Financial results for the Period Ending on 2024-06-30 (Six Months)

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	242,347,690	213,957,053	13.269	276,448,595	-12.335
Gross Profit (Loss)	100,380,376	87,993,611	14.076	125,553,941	-20.049
Operational Profit (Loss)	63,837,171	51,333,439	24.357	94,385,332	-32.365
Net profit (Loss)	45,507,333	34,908,115	30.363	77,721,625	-41.448
Total Comprehensive Income	42,518,841	40,829,916	4.136	81,290,103	-47.694
All figures are in (Actual) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	518,796,285	469,504,250	10.498
Gross Profit (Loss)	225,934,317	208,137,067	8.55
Operational Profit (Loss)	158,222,503	142,300,150	11.189
Net profit (Loss)	123,228,958	108,665,742	13.401
Total Comprehensive Income	123,808,944	109,907,933	12.647
Total Shareholders Equity (after Deducting Minority Equity)	915,443,919	863,341,686	6.034
Profit (Loss) per Share	2.23	1.96
All figures are in (Actual) Saudi Arabia, Riyals

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

Element List	Explanation
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is	Revenue grew by 13.3% to SAR 242.3 million in the current quarter, with an increase of SAR 28.4 million compared to SAR 214.0 million for the same quarter last year, and this growth is mainly driven by the following:

1) The strong double-digit sales growth in Feed by 36.3%, driven by the increase in demand, as well as continuous growth in Flour by 6.7% and in Bran by 5.5%, due to the success of the Company’s strategy in building and further diversifying its customer base and increasing its geographic coverage across the Kingdom, resulted in strong performance across all product categories.

2) Gross Profit increased by 14.1%, reaching SAR 100.4 million compared to SAR 88.0 million in the corresponding quarter last year mainly driven by higher revenue growth while maintaining cost leadership and the competitiveness of feed prices.

3) Operating Expenses remained at the same level as last year same quarter. The slight increase in general and administrative expenses was to support the revenue growth.

As a result of the above, the net profit increased by SAR 10.6 million vs last year's same quarter, and the net margin increased to reach a strong level of 18.8% of revenue.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 increased by 30.4%, SAR 10.6 million vs last year's same quarter, reaching SAR 45.5 million compared to SAR 34.9 million, and this growth is mainly driven by the following:

1) The strong sales growth across all product categories.

2) Continuing the growth in small pack product volume at a high double-digit 21%, driven by strengthening the Company's distribution network and expanding into more geographic coverage, leading to an improvement in the Company's product mixes with better margins.

3) Maintaining cost leadership in line with sales growth.The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is The 12.3% revenue decrease in the current quarter compared to the previous quarter is mainly due to the seasonal impact of Ramadan, which increases demand. During Ramadan, there is a surge in retail activity, especially in the sale of flour products (small packs). This increased demand is typically followed by a significant decline in consumption, affecting the sales of flour products and related categories in the next quarter.The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is Net profit decreased by 41.4% from the previous quarter, amounting to SAR 45.5 million. This decline is primarily due to reduced revenue in the current quarter, influenced by seasonal consumption patterns in flour and a slowdown in feed demand. However, the Company experienced an increase in Bran sales due to higher demand.The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is Revenue increased by 10.5% to SAR 518.8 million in the current period, with an increase of SAR 49.3 million compared to SAR 469.5 million for the same period last year, and this growth is mainly driven by the following:

1) The strong, high double-digit sales growth in Feed by 31.1%, driven by the increase in demand, as well as the strong growth in Flour by 7.3%, which was supported by the additional capacity upgrade in the Jeddah plant and the Ramadan Season.

2) The Company's improved product mixes and the recent launch of the Durum Mill, which produces Semolina. Bran, however, decreased by 6% vs. last year's same period as a result of the Company’s decision to prioritize intake in Feed production to fulfill the growth demand.

3) Gross Profit increased by 8.6%, reaching SAR 225.9 million compared to SAR 208.1 million in the same period last year. This was mainly driven by higher revenue growth, the launch of new projects, and improved product mixes.

As a result of the above, the net profit increased by SAR 14.6 million vs last year's same period and the margin remained at a strong level of 23.8% of revenue.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 13.4% in the current period compared to the same period last year, reaching SAR 123.2 million, with an increase of SAR 14.6 million compared to SAR 108.7 million, mainly due to the following:

1) The increase in revenue by SAR 49.3 million as a result of the increase in the sales of Feed by 31.1% and of Flour by 7.3%, along with the improvement in the product mixes, pricing, and the launching of new products.

2) Continuing the growth in small-pack products at better margins.

3) The consistent improvement in efficiency by maintaining cost leadership.

4) Optimization of cash by improving interest income from the Shariah-compliant Murabaha deposits.Statement of the type of external auditor's report Unmodified conclusionComment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) NoneReclassification of Comparison Items Not applicableAdditional Information First Mills' revenue contribution by category:

54.5% Flour Sales in the current quarter compared to 57.9% in the same quarter of last year (56.7% YTD 2024 Vs. 58.4% in the same period of last year) - Due to sustainable, profitable growth driven by capacity expansion and double-digit growth in small pack products.

27.7% Feed Sales in the current quarter compared to 23.0% in the same quarter of last year (28.0% YTD 2024 Vs. 23.6% in the same period of last year) - Increased due to the growth in volume driven by better demand.

17.8% Bran Sales in the current quarter compared to 19.1% in the same quarter of last year (15.3% YTD 2024 Vs. 18.0% in the same period of last year) - Decreased due to the Company’s decision to prioritize intake in Feed production to fulfill the growing demand.

First Mills maintained healthy net profit margins of 23.8% in the current period compared to the last year's same period at 23.1%.

The Company is on track to deliver on its key project upgrades and newly completed initiatives, enabling it to create outstanding products and better services for its clients.

In the current period, First Mills registered an installed wheat milling capacity utilization of 88%, an increase from 84% recorded during the same period last year.

For more information, please contact the First Mills Investors Relations Department at the email: IR@firstmills.comAttached Documents

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