‎Arabian Mills: Improved cost management drives Q3 profit growth

Rohit Chugh CEO of Arabian Mills

Arabian Mills for Food Products Co.(Arabian Mills) has actually decreased its impressive loans from roughly SAR 1.5 billion in 2023 to around SAR 638 million presently through voluntary financial obligation payments, assisting lower financing expenses and enhance success, stated CEO Rohit Chugh.

In an interview with ArgaamChugh stated financing expenses fell from roughly SAR 120 million in 2023 to SAR 70 million in 2025, with an additional decrease to around SAR 44 million anticipated by the end of 2026.

He kept in mind that the enhanced financial obligation structure is reinforcing the business’s monetary versatility and its capability to money development and growth strategies. Talking about monetary outcomes, Chugh stated Arabian Mills’ efficiency in the very first 9 months of 2026 showed the success of its technique to accomplish sustainable development, supported by company growth, enhanced running effectiveness and more powerful expense management. Income increased 4.18% to SAR 755 million in 9M 2026, driven by a 5.1% boost in flour section profits.

RFlour sales to the retail section grew by a noteworthy 29.9%, while sales to the business-to-business (B2B) sector increased by 2.7%, supported by expanded circulation channels, broader geographical protection and brand-new item launches dealing with progressing customer requirements. Concerning the decrease in bran earnings, Chugh described that it did not show weaker need however rather the redirection of part of the business’s bran output for usage as a basic material in feed production. This method enhances production resources and supports growth in sectors experiencing growing need. The technique likewise assisted drive a 13.7% boost in feed sector earnings throughout the duration.

He included that income development, paired with ongoing enhancements in running effectiveness and tighter control over expenses and basic and administrative costs, supported success. Net revenue climbed up 15.8% to SAR 208.5 million, exceeding income development compared to the very same duration in 2015.

When it comes to Q3 2026, Chugh stated the business kept favorable efficiency, with earnings increasing 2.1% year-on-year (YoY), while net revenue increased 3.3% to SAR 64.6 million, supported by ongoing service development and enhanced expense management. On the functional front, Chugh stated Arabian Mills continued to broaden its circulation network by developing storage facilities in Jeddah and Khamis Mushait, along with its existing storage facilities in Riyadh, Hail and Jazan.

The growth intends to reinforce geographical protection, boost item accessibility and reach a more comprehensive consumer base throughout the Kingdom. The business likewise continues to present brand-new items under its Master Mills brand name, consisting of cake blends, semolina, pasta and gluten-free items, looking for to take advantage of altering customer choices and growing need for much healthier food choices. Concerning federal government aids and item prices, Chugh validated that Arabian Mills take advantage of the assistance structure for the milling sector.

He kept in mind that flour costs in the B2B sector are managed, while the business takes pleasure in higher rates versatility in the retail section. When it comes to the energy rate boosts set up for 2027, Chugh stated the business had actually performed a research study to examine their possible effect on operations. While the boosts are anticipated to impact expenses, he does not prepare for a product effect on running efficiency or net revenue.

Relating to growth tasks, Chugh stated Arabian Mills is continuing with formerly revealed tactical tasks including overall financial investments of roughly SAR 461 million, focused on boosting production and running abilities and supporting future development. He included that the business plans to money as much of these financial investments as possible through internally produced capital, while utilizing offered funding choices when required, stabilizing growth strategies with preserving a strong monetary position.

On dividends, Chugh stressed that the business positions excellent value on investors’ expectations and stays dedicated to listening to their views and recommendations and taking them into factor to consider. He kept in mind that Arabian Mills has actually taken numerous actions in current years to reinforce success and its monetary position, especially by decreasing financial obligation and funding expenses while pursuing growth jobs to support future development.

He included that the business has actually followed an upward pattern in dividend circulations over the previous 2 years, with dividends per share increasing from SAR 0.59 to SAR 1 for 2025. Arabian Mills continues to examine chances to improve investor returns in line with its monetary efficiency, capital and growth strategies, while stabilizing investors’ expectations with sustainable long-lasting development.