The milling industry is vital to Saudi Arabia's food security, ensuring the availability of flour, a staple in the Saudi diet, through processing wheat supplied by GFSA. This aligns with the nation's economic diversification and sustainability goals. As one of the four companies in the Kingdom's flour milling industry, we are a market leader in our operating regions.

Saudi Arabia's wheat market grew at a CAGR of 6.7%, from 2018 to 2022 reaching 3.4 million tons in 2022. Flour consumption, is projected to grow at a CAGR of 3.2%, reaching 4.1 million tons by 2028. driven by increasing population, tourism, and consumption of value-added products.

Our production facilities are strategically located in the Kingdom's fastest-growing population areas. The Al-Kharj facility with daily flour milling capacity of 600 tons is a strategic asset due to its proximity to Riyadh, the Kingdom's capital and the fastest growing region. The Dammam facility serves as a critical distribution hub for the eastern regions with a daily flour milling capacity of 1,350 tons and feed capacity of 450 tons per day. The Madinah facility, with a daily flour milling capacity of 1,200 tons and a storage capacity of 66,000 tons, is pivotal for serving the western regions of KSA.

Through our ownership of the top-selling local flour brand, FOOM, we hold a leading consumer volume market share of average 31.1% for the previous twelve months (as of July 2024) the highest amongst all flour brands. This ownership enhances market presence, customer loyalty, diversified revenue, and strategic growth opportunities, driving success and sustainability in the milling industry.

We have developed an effective and efficient sales infrastructure with dedicated sales teams, a logistics network, and robust customer relationship management, including after-sales support. This investment enhances operational efficiency, market reach, and provides a strong foundation for growth and customer satisfaction. Our sales channels cover the complete spectrum of customers, with dedicated teams for industrial, wholesale, and modern trade clients.

Each production facility boasts a long operating track record. Since being acquired in November 2021, we have implemented strategic programs to enhance manufacturing efficiency. We improved milling processes, increasing capacity, and upgraded the feed mill in Dammam with new technology. The Company has reduced unplanned downtime and improved Overall Equipment Efficiency (OEE) to best-in-class standards through advanced maintenance strategies. Investment in SAP ERP systems support a wide range of business processes, enabling real-time data flow and enhanced decision-making.

The Company is led by a highly experienced management team specializing in milling and food and beverage sectors, evidenced by key initiatives enhancing efficiency, product quality, and value-added offerings. The Company also benefits from its network of shareholders and international partners, including Allana International Company, Abdullah AlOthaim Markets Company, and United Feed Manufacturing Company, who provide expertise in flour business, retail segments, and grains sourcing, respectively.

The Company has achieved significant sales growth, with revenues grew from SAR 336 million in FY2021 to SAR 566 million in FY2023, representing 29.7% CAGR. The revenue is diversified geographically and across customer segments, minimizing concentration risk. The Company has also seen improved EBITDA margins, increasing from 32.1% in FY2021 to 38.0% in FY2023, driven by higher-margin products and cost efficiencies. The adjusted EBITDA margin for 2023 is 40.0% after adjusting non-recurring items. The business is cash generative with low capital expenditure and efficient working capital management, leading to a rise in operating free cash flow from SAR 37 million in FY2021 to SAR 163 million in FY2023.
As of 31 December 2023, the Company had no outstanding debt, providing significant financial stability and flexibility. This debt-free status allows the Company to reinvest in growth opportunities, improve operational efficiencies, and enhances attractiveness to investors and partners, ensuring resilience in volatile markets.