Oman Flour Mills plans expansion, acquisitions, and strong growth to fuel food security push

Muscat: Haitham bin Mohammed Al Fannah, CEO of Oman Flour Mills Company, emphasized the group’s dedication to supporting national food security initiatives by boosting self-sufficiency in basic commodities. Speaking to the Oman News Agency, Al Fannah announced that the company had acquired a 50,000 square meter plot adjacent to its existing facilities to expand its storage and logistics operations.

Highlighting the company’s strategic presence at Sultan Qaboos Port through grain silos and unloading operations, Al Fannah revealed that the group’s operational contract has been extended for another 50 years—a major step reflecting its enduring commitment to the Sultanate’s food resilience.

As part of its ambitious five-year vision, Oman Flour Mills is currently evaluating two acquisition opportunities aligned with its core businesses, reinforcing growth through mergers and acquisitions as a key strategic pillar.

The company’s audited financial results for the fiscal year ending December 2024 demonstrated robust performance, driven by improved gross margins and a significant reduction in affiliated company losses. Group revenues rose by 3.9 percent to RO 128.8 million, while cost of goods sold dropped by 2.2 percent, aided by lower global commodity prices.

The animal feed sector posted a 3.7 percent growth, though the bakery and flour division saw a slight decline. Oman Flour Mills Company alone recorded a 6.5 percent jump in revenues to RO 109.35 million compared to RO 102.68 million in 2023, with total sales volume increasing from 616,000 tons to 690,000 tons.

Strong cost management practices led to a 1 percent decrease in cost of goods sold, contributing to a 67 percent rise in gross profit margin, with gross profit reaching RO 18.63 million—an impressive 68.8 percent growth year-on-year

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