Modern Mills Q3 Profit Rises 11% on Higher Volumes, Prices
Saudi flour and feed producer posts SAR 62.3 million in third-quarter net profit as revenue climbs 25.8%, though raw material and financing costs weigh.
Modern Mills for Food Products Company reported third-quarter net profit of SAR 62.3 million ($16.6 million), up 11% from a year earlier, according to figures filed with the Saudi Exchange.
Revenue for the quarter reached SAR 328.5 million ($87.52 million), a 25.8% increase on the SAR 261.2 million ($69.6 million) recorded in the same period of 2025. Growth came from across the company's main business segments.
The profit gain rested on two levers: higher sales volumes and better selling prices. Cost pressure worked the other way. Raw material expenses climbed and were not fully recovered through customer pricing, while distribution costs rose as the company extended its geographic reach. Financing costs also increased.
Against the second quarter, net profit rose 16.6% and revenue 10.6%. The company linked that sequential improvement to higher volumes and a better gross profit margin.
Nine-month figures
For the first nine months of 2026, Modern Mills earned SAR 181.6 million ($48.38 million), up 5.9% from SAR 171.4 million ($45.6 million) a year earlier. Revenue over the period was SAR 906.7 million ($241.5 million), 17.2% higher than the SAR 773.6 million ($206.1 million) booked in the prior year.
The company restated prior-year comparative figures after moving certain shipping and delivery expenses out of revenue and into selling and distribution costs.
Capacity
Modern Mills produces flour, animal feed and bran from facilities in Al-Jumum, Khamis Mushait and Al-Jouf. Its daily wheat-milling design capacity is 4,700 metric tons, split between 3,525 metric tons of flour and 1,400 metric tons of feed.
The gap between revenue growth and profit growth is the number to watch. Sales expanded roughly 26% in the quarter while net profit advanced 11%, a sign that input costs and distribution spending are absorbing much of the additional turnover. For a miller, the ability to lift prices without losing volume determines whether that spread narrows or widens.
