Gross profit rose by 11.2% to SAR 124.1 million compared to SAR 111.5 million in the same quarter last year, driven by higher revenue and effective cost management. The Company maintained its cost leadership despite market fluctuations, benefiting from stable feed prices and improved raw material efficiency.

Operating expenses remained well-controlled and increased only modestly in line with revenue growth, reflecting the Company’s continued investment in supporting sales expansion and market penetration initiatives.

As a result of the above, net profit rose by SAR 10.4 million to SAR 71.7 million, compared to SAR 61.3 million in the same quarter last year, representing an increase of 16.9%. The net profit margin improved to a solid 25.0% of revenue, while earnings per share amounted to SAR 1.30 in the current quarter, compared to SAR 1.11 for the same quarter last year, representing an increase of 17%.

1) Sustained sales growth across all product categories, particularly the feed segment, which recorded strong performance supported by higher sales volumes and improved pricing dynamics, which was amplified by the acquisition of Al-Manar Feed Company.

2) The Company achieved strong growth in industrial flour sales to B2B channels by continuing to expand as the Company onboarded new customers through its distribution network and deepened its geographic reach across the Kingdom.

3) Effective cost management, as the Company maintained cost leadership while supporting higher sales volumes and strategic investments to drive sustainable growth.

1) The feed segment recorded strong growth of 70.8%, driven by increased demand across markets and efficient operational execution. The flour segment also achieved growth of 11.9%, benefiting from back-to-school seasonality and higher consumer activity. Conversely, bran sales declined by 20.5% as the Company made a strategic decision to prioritize feed production and utilize bran in the manufacturing process to support rising demand in this segment.

2) Gross profit increased by 20.8% to SAR 124.1 million, compared to SAR 102.7 million in the previous quarter, driven by revenue growth, improved product mix, and the Company’s continued commitment to cost leadership and competitive feed pricing.

1) An increase of SAR 48.5 million in revenue, mainly from higher sales in Feed and Flour, supported by a better product mix and effective pricing management.

2) Improved cost control, particularly in manufacturing, which helped enhance overall efficiency and profitability.

1) Feed sales recorded solid growth of 4.2%, driven by higher demand and efficient production planning, while Flour sales increased by 4.9%, supported by enhanced utilization of operational capacity. In contrast, Bran sales declined by 3.2%, as the Company continued to prioritize Feed production to meet growing market needs and optimize profitability.

2) The improvement in the product mix and the focus on higher-margin categories continued to support overall performance, alongside operational enhancements and the contribution of new initiatives.

3) Gross profit increased by 3.7% to SAR 350.0 million, compared to SAR 337.5 million in the same period last year, mainly due to higher revenue and improved product mix, while maintaining strong cost control and efficiency.

As a result, net profit increased by 9.9% to SAR 202.7 million, compared to SAR 184.5 million in the same period of the previous year, representing an increase of SAR 18.2 million. The net profit margin strengthened to 25.1%, up from 23.7% last year, reflecting the Company’s continued focus on operational excellence and cost leadership. Earnings per share rose to SAR 3.67, compared to SAR 3.34 in the same period last year, marking a 9.9% increase.

1) Higher revenue of SAR 27.6 million, supported by strong sales in Feed and Flour, improved product mix, and pricing.

2) Improved cost efficiency through maintaining cost leadership.