{
  "id": 16451439,
  "title": "Modern Mills Profit Climbs 11% to 62.3M SAR",
  "url": "https://urgent.news/2026/10/25/modern-mills-profit-climbs-11-to-62-3m-sar",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-25T08:11:01.000Z",
  "source": {
    "name": "The Saudi Standard",
    "slug": "the-saudi-standard",
    "url": "https://saudistandard.com/2026/10/25/modern-mills-profit-climbs-11-percent-to-62-3m-sar/"
  },
  "original_language": "en",
  "account": "Riyadh, Saudi Arabia — Modern Mills Company reported a net profit of 62.3 million SAR for Q3 2026, marking an 11% increase from 56.1 million SAR in the same quarter last year. Revenue grew 25.8% to 328.5 million SAR, propelled by higher volumes and improved selling prices. However, higher commodity costs and rising distribution expenses constrained the profit gain. For the nine months ending September 30, 2026, Modern Mills achieved 181.6 million SAR in net profit, up 5.9% from 171.4 million SAR in the prior-year period. Overall revenue for the period reached 906.7 million SAR, an 17.2% increase. Earnings per share stood at 2.24 SAR, slightly higher than 2.12 SAR in the previous year. The third quarter proved to be Modern Mills' strongest to date, with net profit rising 16.6% from 53.4 million SAR in the second quarter and revenue exceeding the prior quarter by 10.6%, adding 31.5 million SAR sequentially. Gross profit increased to 116.4 million SAR, up 13.1% from 102.9 million SAR in the second quarter, while operating profit grew 13.4% quarter-on-quarter to 72.2 million SAR. Total shareholders' equity by period-end reached 342.6 million SAR, representing a 26.0% rise from 272.0 million SAR a year earlier, indicating effective retention of earnings despite rising costs. Key factors contributing to the company's performance include higher sales volumes across all major product categories, improved average selling prices supporting top-line growth, commodity cost inflation not fully passed on to customers, increased selling and distribution expenses due to geographic expansion, and higher financing costs impacting net profit in both the quarter and nine-month period. Gross margin for the nine-month period reached 36.2%, slightly down from the prior year's 37.8%. For investors, revenue growth outpacing profit growth signifies a widening gap between increased revenue and profit conversion, attributed mainly to commodity costs and distribution expenses. The 26% rise in shareholders' equity underscores a strengthening balance sheet, providing a financial buffer if cost pressures persist. While geographic expansion is driving volume growth, it also elevates operating expenses, requiring careful execution discipline. At 2.24 SAR earnings per share for the nine months, Modern Mills' profitability outlook appears stable, contingent upon commodity price trends in the final quarter of 2026. Investors are advised to scrutinize revenue quality, monitor balance sheet strength, assess the impact of geographic expansion, and assess margin compression as a sector-wide challenge. Modern Mills' performance aligns with Saudi Arabia's Vision 2030 goals for building resilient, domestically anchored food security infrastructure.",
  "summary": "Riyadh, Saudi Arabia — Modern Mills Company posted a net profit of 62.3 million SAR for the third quarter ending September 30, 2026, up 11.0% from 56.1 million SAR in the same quarter last year. Revenue surged 25.8% to 328.5 million SAR, driven by higher volumes and improved selling prices. Higher commodity costs and rising […] The post Modern Mills Profit Climbs 11% to 62.3M SAR appeared first…",
  "key_points": [
    "Modern Mills profit rises 11% to 62.3M SAR in Q3 2026",
    "Revenue increases 25.8% to 328.5M SAR on higher volumes",
    "Higher commodity costs and distribution expenses constrain gains"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}