Investment Highlights

Investment Highlights

1. OPERATES IN A CONSUMER STAPLE INDUSTRY PRIMED FOR GROWTH

We produce, sell and distribute wheat-based flour and animal feed products in KSA, a market set for sustained growth. sustained growth.

KSA’s economy is poised for substantial expansion, propelled by Vision 2030. 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 consumer preference and consistent appetite for baked goods. This will support demand for our products, especially for higher profit margin categories namely unsubsidized products including 10KG or less flour, and other B2C products.
  • 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 us 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 reports, poultry feed is 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.

2. PROMINENT PLAYER IN THE WHEAT FLOUR MARKET

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

Since our 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.

We have consistently grown our market share in both volume and value across both our 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.

3. STRATEGICALLY LOCATED ACROSS KSA

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.

Our two other locations, Hail and Jazan, serve as production, distribution, and storage hubs for the north and south regions.

  • Advantages of operating and being based out of 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 us to serve its customers at lower distribution costs compared to other milling companies in different locations.

4. BROAD AND GROWING CUSTOMER BASE

Built trusted partnerships with a 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.
  • Our products reach every region of KSA, serving a diverse range of customers from households and small bakeries to HORECA and livestock and poultry farmers.
  • We have built a robust distribution network that ensures timely delivery and availability of its products, no matter where its customers are located.
  • Our extensive customer base is a testament to Arabian Mills’ strength in the wheat flour and bran market and growing presence in the animal feed market.

5. HIGH-QUALITY PRODUCTS & CUTTING-EDGE R&D

Produces high-quality wheat flour-based feed 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.

We 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.

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

  • We 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.
  • We proudly received various ISO accreditations because of our strong adherence to food safety standards, demonstrating the high quality of our products and operational processes.

    • 6. FULLY AUTOMATED FACILITIES LED BY HIGHLY SKILLED TEAM

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

    Our facilities are fully fitted out with world-class machinery and equipment.

    We utilize the latest milling and processing technology to maintain quality, consistency, and excellence while streamlining operations, enabling us to reduce downtime and increase daily output.

    We employ 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.

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

    7. CONSISTENTLY DELIVERED ROBUST FINANCIAL PERFORMANCE

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

    We have demonstrated our 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 Arabian Mills’ privatization in 2021G, we have been consistently investing in CapEx to enhance and develop our facilities.

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

    We are a high cash flow generative business, allowing future dividend payments.

    8. DEEPLY COMMITTED TO ESG

    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 we have a dedicated health, safety, security and environment department with a robust health & safety policy. Our health and safety management system is certified to ISO 45001 across all operations.

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

    We have 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 we are 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.