By the end of the first nine months of 2023, First Mills Company’s profits decreased by 17.5 percent to 162.7 million riyals ($43.3 million) compared to profits of 197.2 million riyals ($52.5 million) achieved during the same period in 2022.
On the contrary, revenues during the same period increased by 4.5 percent to 717.6 million riyals, compared to revenues amounting to 687 million riyals achieved during the same period in 2022.
The company attributed the reason for the decrease in profits during this period on an annual basis to the increase in net financing costs by about 34 million Saudi riyals for the period compared to the same period of the previous year, and this is mainly due to the addition of long-term financing to the company’s financial records after the completion of the merger process with The parent company is “Raha Al Safi Foods”.
The company’s profits also decreased during the third quarter by 14.9 percent to 54 million riyals, compared to profits amounting to 63.4 million riyals achieved during the same period in 2022.
Revenues during the same period increased by 4.3 percent to 248.1 million riyals, compared to revenues amounting to 237.8 million riyals achieved during the same period in 2022.
First Mills Company attributed the reason for the decrease in profits during the current quarter compared to the same quarter of the previous year to the following factors:
Total profit decreased by 3.2 percent to reach 100.4 million Saudi riyals compared to 103.8 million Saudi riyals during the same quarter of the previous year, mainly due to keeping up with competitive prices for feed. Net financing costs increased by about 8 million Saudi riyals for the current quarter compared to the same quarter of the previous year, as a result of the transfer of long-term financing after completing the merger with the parent company, “Raha Al Safi Foods,” and starting to record it in the records of the First Mills Company on 09/2022. 15pm. Excluding the impact of these interest rate costs, the like-for-like net profit remains in line with the rates achieved in the previous year. Net profit margin decreased by 21.8 percent compared to 26.7 percent for the same quarter of the previous year.
2023-10-31 07:58:02
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