Fourth Milling Co. announces its Interim Financial results for the Period Ending on 2026-06-30 ( Six Months )

Fourth Milling Co. reported a net profit of SAR 103.87 million for the first half of 2026, representing a 19.74% increase year-on-year. For the second quarter alone, net profit reached SAR 50.55 million, growing 48.46% compared to the same period last year, though it declined 5.18% sequentially due to seasonal demand fluctuations.
Half-year revenue rose 12.80% to SAR 343.08 million, driven by an 8% increase in flour sales volumes and a 15% surge in bran volumes. The company attributed this growth to improved sales strategies and better pricing in the bran segment, which helped offset a decline in animal feed sales.
Operational efficiency improved as gross profit for H1 2026 climbed 23.05% to SAR 169.49 million, reflecting a strategic focus on high-value products and margin management. However, quarterly results were impacted by a 10% volume decline in consumer flour packs and higher selling and distribution expenses following the reclassification of transportation costs.
The company's financial position strengthened with total shareholders' equity reaching SAR 828.35 million, an 11.83% increase year-on-year. Earnings per share for the six-month period rose to SAR 0.19, up f

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	167,839,571	138,021,853	21.603	175,240,646	-4.223
Gross Profit (Loss)	84,252,775	59,782,082	40.933	85,237,196	-1.154
Operational Profit (Loss)	54,742,087	37,697,920	45.212	57,024,807	-4.003
Net Profit (Loss) Attributable to Shareholders of the Issuer	50,553,977	34,052,411	48.459	53,314,414	-5.177
Total Comprehensive Income Attributable to Shareholders of the Issuer	50,534,506	33,959,704	48.807	53,288,697	-5.168
All figures are in (Actual) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	343,080,217	304,150,129	12.799
Gross Profit (Loss)	169,489,971	137,743,404	23.047
Operational Profit (Loss)	111,766,894	91,920,155	21.591
Net Profit (Loss) Attributable to Shareholders of the Issuer	103,868,391	86,748,232	19.735
Total Comprehensive Income Attributable to Shareholders of the Issuer	103,823,203	86,738,784	19.696
Total Shareholders Equity (after Deducting Minority Equity)	828,352,791	740,711,816	11.831
Profit (Loss) per Share	0.19	0.16
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 for the current quarter amounted to SAR 167.8 million, compared to SAR 138 million in the corresponding quarter of the previous year, representing an increase of 22% (SAR 29.8 million), primarily driven by the following: Flour segment: Sales volumes grew by 8% year-on-year, supported by improved sales strategies across various flour categories. Bran segment: Sales volumes increased by 28%, alongside improved prices, which contributed significantly to the revenue growth of the current quarter compared to the same quarter of the previous year. For comparability purposes, it should be noted that revenue for the corresponding quarter of the previous year includes a deduction in transportation costs amounting SAR 2.6 million, which are presented under selling and distribution expenses in the current quarter.
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 for the current quarter amounted to SAR 50.5 million, compared to SAR 34 million in the corresponding quarter of the previous year, representing an increase of 48% (SAR 16.5 million). This was primarily driven by a 22% growth in revenue and a 41% growth in gross profit, supported by higher sales volumes in the flour and bran segments and improved margins, despite higher selling and distribution expenses, in line with commercial activities and channel support, in addition to higher general and administrative expenses.
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is	Revenue for the current quarter amounted to SAR 167.8 million, compared to SAR 175.2 million in the previous quarter, representing a decline of 4% (SAR 7.4 million). This is primarily attributable to the seasonality of demand in the flour segment, where sales volumes declined by 10%, particularly in the consumer pack categories. Nevertheless, the bulk flour category recorded a volume growth of 6%, while bran sales remained consistent and animal feed sales declined by 12%. For comparability purposes, it should be noted that revenue for previous quarter includes a deduction in transportation costs amounting SAR 4 million, which are presented under selling and distribution expenses in the current quarter.
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is	Net profit for the current quarter amounted to SAR 50.5 million, representing a decline of 5% (SAR 2.8 million) compared to the previous quarter, primarily attributable to the 4% decline in revenue driven by the seasonality of demand. Net profit was also impacted by a 16% increase in selling and distribution expenses, mainly as a result of the reclassification of transportation costs, in addition to a 6% increase in general and administrative expenses.
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 for the current period amounted to SAR 343.1 million, compared to SAR 304.2 million in the corresponding period of the previous year, representing an increase of 13%, primarily driven by the following: Flour segment: Sales volumes grew by 8% year-on-year, supported by improved sales strategies across various flour categories. Bran segment: Sales volumes increased by 15%, alongside improved bran prices during the current period compared to the corresponding period of the previous year. This growth was partially offset by a decline in sales volumes in the animal feed segment compared to the corresponding period of the previous year.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is	The net profit for the current period reached SAR 103.9 million, increased by 20% compared to the same period last year. This is mainly due to increase in revenue, supported by the company's ongoing strategic focus on driving growth in high-value products and focusing on margins. Net profit was also affected by higher operating expenses compared to the same period last year, including selling and distribution expenses, in line with business activities and support for sales channels. For comparison purposes, it is worth noting that the net profit for the same period last year included a one-time reversal of deferred tax liabilities amounting to 2.9 million Saudi Riyals.
Statement of the type of external auditor's report	Unmodified conclusion
Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion)	None
Reclassification of Comparison Items	Some comparative figures have been reclassified. The details of the reclassification are available in notes to financial statements.
Additional Information	For additional information, please contact Investor Relations of Fourth Milling Company at investor.relations@mc4.com.sa.