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Efforts and Initiatives to Achieve Food Security in the Sultanate of Oman says Oman Mills

Muscat: Oman Flour Mills Company seeks to support food security in the Sultanate of Oman through its initiatives that enhance self-sufficiency in basic commodities.

Haitham bin Mohammed Al Fannah, CEO of Oman Flour Mills Company, said: “The company places great importance on supporting food security initiatives in the Sultanate of Oman and seeks to enhance its expansion capabilities in storage operations and logistics infrastructure by acquiring a 50,000 square meter plot of land adjacent to its facilities. The group has also taken important steps to secure its strategic presence at Sultan Qaboos Port through grain silos and unloading operations.”

He added in a statement to the Oman News Agency that the company’s contract has been extended for another 50 years, reflecting its long-term commitment to food security in the Sultanate of Oman.

He explained that growth through mergers and acquisitions is a fundamental pillar of the group’s strategy.

He noted that two acquisition opportunities are currently being evaluated that align with the group’s core businesses as part of its ambitious five-year vision.

He explained that the Oman Flour Mills Group achieved notable progress in financial performance and strategic execution during 2024, and successfully implemented key projects.

The audited financial statements of Oman Flour Mills Company (the parent company) and its subsidiaries (the group) for the fiscal year ending December 2024 showed strong financial performance in 2024, driven by improved gross margins and a significant reduction in losses from affiliated companies.

Group revenues increased by 3.9 percent to OMR 128.8 million, while cost of goods sold decreased by 2.2 percent, mainly due to lower commodity prices in global markets, which contributed to an improvement in gross profit margin. The animal feed sector witnessed a growth of 3.7 percent, while the bakery and flour sector recorded a slight decline.

Oman Flour Mills Company recorded a 6.5 percent increase in revenues during the past year, reaching OMR 109.35 million, compared to OMR 102.68 million in 2023.

Total sales volume also increased from 616,000 tons to 690,000 tons, with gross profit rising by 68.8 percent to OMR 18.63 million.

Improved cost management contributed to a 1 percent reduction in cost of goods sold and a 67 percent increase in gross profit margin due to lower global commodity prices.