Mohammed Al-Farraj, Senior Head of Asset Management at Arbah Financial, said that the results of Nadk company during the second quarter of 2026 showed the company's ability to achieve revenue growth despite the pressures on profit margins, noting that revenues rose by about 5.5% year-on-year, supported by improved prices of some products. However, the rise in operating and feed costs limited the reflection of this growth on profits.

Al-Farraj explained in an interview with Al Arabiya Business that feed costs, which are one of the most prominent inputs in dairy production, rose by about 9.25%, leading to pressure on profit margins of nearly 45 million riyals during the second quarter, causing net profit to decline to about 64 million riyals, a drop of 44% compared to the same period last year.

He added that treasury investments decreased by about 9 million riyals, along with an increase in some operating and selling expenses, which added further pressure on the results.

He pointed out that the company expects an improvement in the second half of 2026 as operating and feed cost pressures ease, which may support the recovery of profit margins compared to the second quarter.

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