| 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 increased by 2.8%, reaching SAR 140.6 million in Q2, showing an increase of SAR 3.8 Million compared to SAR 136.8 million for the same quarter of last year. This growth was primarily driven by a 6.2% (SAR 5.5 million) increase in various flour product categories, partially offset by a 3.4% decline in feed and bran categories. |
| 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 2.7% in Q2, reaching SAR 34 million. This represents an increase of SAR 0.9 million, compared to SAR 33.1 million in the same quarter of last year, primarily driven by an improving gross profit margin by 2.6 points (SAR 5.2 million) due to growth in volume and improvement in production efficiency, a 2.8% growth in sales (SAR 3.8 million) and an increase in income from Sharia compliant investment deposits of SAR 0.7 million. This was partially offset by an increase in selling and distribution expenses by SAR 3.3 million mainly due to an increase in transportation cost pertaining to volume growth in flour sales and a SAR 1.6 million increase in general and administrative expenses during the current quarter. |
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is | The 17.4% revenue decline in the current quarter compared to the previous quarter is mainly due to seasonality factors, as the previous quarter included the Holy month of Ramadan, which typically drives higher sales due to increased flour consumption. |
| 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 35.4% from the previous quarter primarily due to drop in revenue in the current quarter due to seasonality factors. |
| 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 showed consistent performance, recording an increase of 2.8% (SAR 8.4 million) mainly driven by growth across various flour product categories which recorded a growth of 5.2% (SAR 10.2 million) mainly attributable to increase in demand for flour. |
| The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is | Current period net profit increased by 6% reaching SAR 86.7 Million due to the increase in revenue by 2.8%(SAR 8.4 Million), decrease in deferred tax by SAR 2.9 Million and an increase in income from Sharia compliant investment deposits of SAR 2 million, which was partially offset by an increase in selling and distribution expenses of SAR 5.3 million mainly due to higher transportation costs and General and administrative expenses by SAR 4.1 million mainly due to increase in employee costs and insurance expense. |
| 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 | For more information, please see note 26 in the condensed interim financial statements for the period ended 30th June 2025. |
| Additional Information | For additional information, please contact Investor Relations of Fourth Milling Company at investor.relations@mc4.com.sa. |
