Produces, sells and distributes wheat-based flour and animal feed products in KSA, set for sustained growth.

KSA’s economy is poised for substantial expansion, propelled by Vision 2030 and multiple pro-growth socio-economic.. The sustained economic expansion is also powered by a growing population, rising incomes, and stable inflation. This will support strong and sustained demand for Arabian Mill’s products.

According to market reports, the wheat flour market in KSA is set to witness strong growth at a CAGR of approximately c.4.2% for the 2023G – 2030G period, with newer categories such as wholewheat, and value-added flour products outperforming the market. This is driven predominantly by growth in food services, rising demand for wheat-based staples, and a consumer preference and consistent appetite for baked goods. This will support demand for the Company’s products, especially for its higher profit margin categories namely unsubsidized products including 10KG or less flour, and other B2C products., and feed.

Saudi wheat flour production is expected to remain local over the medium term with the bulk wheat being subsidized by the government. This is driven predominantly by the government’s efforts to enhance local production. This enables the Company to further grow its market share within the Kingdom’s flourishing economy.

The government's efforts to support the localization of poultry production are expected to play a fundamental role in the growth of poultry feed. According to market report, poultry feeds are expected to surpass livestock feed reaching a cumulative market share of 58% in terms of volume and 64% in terms of value by 2030G. These efforts may also contribute to enhancing Arabian Mill’s market share in this promising sub-category.

Produces some of the most high-quality products in the market with a diversified portfolio of future products driven by its cutting-edge R&D lab.

Arabian Mills markets its flour and edible bran products under the "Finah" brand and its feed products under the “Kamil” brand.

The flour, bran and feed products are crafted with the highest standards of quality and safety, ensuring that its customers receive only the best.

The Company can meet specific customer needs by producing different types of wheat flour with varying protein contents.

Arabian Mills is at the forefront of product development, continuously introducing new and improved wheat flour and feed products to meet the changing demands of consumers and the industry.

Its dedicated R&D team is constantly exploring new formulations and technologies to enhance the quality and performance of its products.

• The Company has recently launched poultry feed and is expected to launch new wheat flour products by year end including chakki fresh atta flour, semolina, gluten-free snacks, and pasta.
• In 2023G, Arabian Mills established a dedicated whole wheat flour mill with a daily capacity of approximately 150 ton in its Riyadh plant, enhancing its capabilities in health and wellness-focused products.
• The Company has proudly received various ISO accreditations because of its strong adherence to food safety standards, demonstrating the high quality of its products and operational processes.

Strategically located in Riyadh with two other plants located in Hail and Jazan, close to livestock farming and tourism hubs serving other key regions.

Riyadh provides Arabian Mills with unique and well-established market access to the capital of the GCC’s largest country and economy.

The Company’s two other locations, Hail and Jazan, serve as production, distribution, and storage hubs for the north and south regions.

• Advantages of operating and being headquartered in Riyadh include being linked to the city’s population growth, rising tourism, and other favorable demographic factors as well as evolving food consumption trends.
• Riyadh facility enables Arabian Mills to serve its customers at lower distribution costs compared to other milling companies in different locations.

Built trusted partnerships with our broad and growing network of customers.

With over four decades of experience, Arabian Mills has become a trusted partner for a growing number of customers across KSA, known for reliability and high-quality products.

Its products reach every region of KSA, serving a diverse range of customers from households and small bakeries to HORECA and livestock and poultry farmers.

The Company has built a robust distribution network that ensures timely delivery and availability of its products, no matter where its customers are located. In 2023G:

• B2B products were distributed to 375 distributors, 6,400 beneficiaries and 281 direct customers.
• B2C products were distributed to 485 retailers and wholesalers, 9 modern trade retailers with over 550 branches.

Its extensive customer base is a testament to its strength in the wheat flour and bran market and growing presence in the animal feed market.

One of the market-leading wheat milling companies in the GCC, with the largest wheat milling capacities in the KSA.

Since its privatization in 2021G, Arabian Mills has accelerated its growth and today is among the market leaders in the GCC and the largest in terms of milling capacity in KSA.

The Company has consistently grown its market share in both volume and value across both its wheat flour and feed products.

• Daily flour production capacity of approximately 4,920 tons, and daily feed milling capacity of 600 tons.
• Second largest in terms of market share in the KSA flour market, with 28.4% and 25.3% in terms of volume and value respectively in 2023G.
• Top 10 largest players in the Saudi animal feed market
• A leader in the bran segment, with a market share of 32.6% in 2023G.

Fully automated, world-class facilities, led and empowered by a team of highly skilled millers and management.

Arabian Mill’s facilities are fully fitted out with world-class machinery and equipment.

The Company utilizes the latest milling and processing technology to maintain quality, consistency, and excellence while streamlining operations, enabling it to reduce downtime and increase daily output.

It employs an automated grain receiving and storage monitoring system that provides real-time data on intakes, inventories, and outbound materials, enabling improved traceability, quality control, efficiency, and flexibility of operations.

Arabian Mills benefits from having one of the most experienced, and knowledgeable milling teams in KSA with at least 10 certified millers with an average experience of more than 15 years.

• The Company recently invested in a strong network of IT infrastructure and has successfully implemented the SAP system in its operations to support the automation of the supply chain.
• Its digital enhancements play a key role in maintaining operational efficiency and lowers downtime of its production facilities, as demonstrated by an 81.1% reduction in aggregate downtime across its production facilities in 2022G compared to 2021G.

Consistently delivered strong financial performance with high profitability and robust cash flow generation.

Arabian Mills has demonstrated its ability to deliver strong revenue growth driven by management efforts to gain greater market share. It is also owed to enhanced utilization levels and robust average selling prices.

Since its privatization in 2021G, Arabian Mills has been consistently investing in CapEx to enhance and develop its facilities.

Arabian Mills has demonstrated its ability to translate earnings to cash thanks to efficient working capital management, effective cost control measures, operational enhancements, and prudent debt management.

• Strong growth from 2021G to 2023G achieving a CAGR of 16.0%, 46.7% and 28.5% in revenue, EBITDA and profit, respectively.
• In 2023G continued to improve profitability margins while gaining market share, achieving margins of 48.2%, 44.0% and 23.2% in gross profit margin, EBITDA, and profit margin for the year, respectively.
• Enhanced cash generation ability over the past 3 years reaching SAR 238 million in Free Cash Flow (FCF) translating into a cash conversion of c. 62.0% in 2023G.
• Arabian Mills is a high cash flow generative business, allowing future dividend payments

Deeply committed to prioritizing sustainability, ethics, and customer satisfaction to enhance Saudi society’s quality of life and standard of health and contribute to KSA’s food security agenda.

Health and safety are top priorities at Arabian Mills and it has a dedicated health, safety, security and environment department with a robust health & safety policy. The Company's health and safety management system is certified to ISO 45001 across all its operations.

Arabian Mills is dedicated to implementing sustainable practices in its operations and minimizing environmental impact.

The Company has a strong focus on talent development and retention of staff. Arabian Mills is also deeply committed to developing Saudi milling talent, in line with the Saudization strategy.

To ensure it is delivering a positive social impact on KSA’s community, Arabian Mills is focused on high-quality, nutritious products and is committed to producing and marketing products that cater to the health-conscious consumer.

Arabian Mills is proud to be a key contributor to KSA’s food security agenda including achieving food security, preventing food waste, and expanding domestic production for poultry.

Aligning with national growth

As KSA’s population continues to grow, Arabian Mills is committed to scaling its operations to meet the rising demand for high-quality wheat-based flour products and animal feed.

Capacity expansion

Arabian Mills is investing in expanding its production capacity in both wheat flour and feed to ensure a steady supply of its products, supporting the food security and nutritional needs of the nation.

Broadening product portfolio

To support its ambitions of further expanding its market share, Arabian Mills is focused on expanding in key categories primed for robust growth, including wheat flour and its derivatives such as pasta and gluten-free options as well as in animal feed including poultry feed.

Expanding customer base

Arabian Mills is diversifying its customer base by expanding in both the B2B channel, where it already enjoys a well-established presence and in the promising B2C channel.

Effective marketing, sales and pricing strategies

The Company is also making dedicated efforts to enhance the positioning of its Finah and Kamil brands by implementing a go-to-market strategy. Several key initiatives include redesigning the packaging with a modern look and feel, developing a marketing and promotional plan and establishing post-sales support. Arabian Mills is also leveraging an optimal pricing model to ensure it is competitively priced, based on prevailing market dynamics, seasonality and competition.

Implementing automation

The Company is focused on using best-in-class technology and increasing automation across its functions, including procurement, silos monitoring, milling, warehousing, and overall supply chain management. The successful implementation of these technologies will help reduce costs, improve traceability, quality control and operational flexibility.

Enhancing technical capabilities

The Company is also focusing on enhancing its technical capabilities in the milling process to increase efficiency and utilization, ultimately generating higher output.

Innovative growth

Arabian Mills is committed to driving locally relevant innovation that meets the evolving needs of its customers.

Robust pipeline of new products

With a strong focus on developing new and improved products, the Company has a robust pipeline of new products for its Finah brand including gluten-free snacks, semolina, ready mixes, chakki fresh atta flour and pasta, which it expects to launch be year-end. It is also expanding its animal feed range, Kamil, to tap into growing market opportunities ; Arabian Mills has recently launched multiple poultry feed SKUs to capitalize on the recent government policies aimed at enhancing local poultry production.

R&D investment

The Company is investing significantly in research and development to introduce cutting-edge products that set new industry standards for quality and performance.

Establishing new warehouses and distribution centers

Arabian Mills is strategically establishing new warehouses and distribution centers in Jeddah, Makkah, Dammam, and Tabuk. Establishing strong local operations in these key regions will ensure efficient distribution and customer service, contributing to regional economic development.

Multi-channel distribution

To better serve its growing customer base Kingdom-wide, the Company is strengthening its presence across multiple distribution channels, including retail, online platforms, and direct-to-customer sales. Arabian Mills is also forging partnerships with distributors, retailers, and wholesalers to expand its B2C reach.