Al-Eqtisadiah from Riyadh

Monday, July 20, 2026 10:16 | 2 minutes read

The profits of the National Agricultural Development Company (Nadec) declined by 44% in the second quarter year-on-year to 64.5 million riyals compared to 115 million riyals in the same quarter last year.

Nadec justified the decline in a statement on Tadawul today, Monday, citing several factors, most notably the decline of four items in the statements. The first was the cost of sales to revenues, which rose 9.2%, due to an exceptional increase in feed, shipping, and fee costs related to regional maritime disruptions, with the financial impact of the increase amounting to 45 million riyals. The company expects these exceptional pressures to ease as the regional operating environment returns to normal.

Thu, 23 2026

The second pressing item was selling and marketing expenses, which rose 5.4%, affected by an increase in distribution costs. The third was an increase in other expenses by 7.84 million riyals, due to higher losses from the sale of biological assets. The fourth item was treasury income, which declined by 9.2 million riyals, due to a decrease in income from Murabaha deposits with banks.

The company also disclosed that among the reasons for the decline in net income was its recognition of a loss of 9.1 million riyals representing its share in the investment in the joint venture 'Al-Ra'ee National Livestock'. The company had announced last May its full acquisition of it after purchasing the 49% stake of 'An'am Saudi Arabia for Trade'.

Sun, 03 2026

Meanwhile, the company's quarterly revenues rose 5.5% to 876.5 million riyals, attributed to growth in sales of the protein and agriculture sectors by 99.2% and 41% respectively, as the company continues to invest in strategic food sectors of long-term commercial importance. The growth of the protein and agriculture sectors helped mitigate the impact of a 3.6% decline in sales of the dairy and food manufacturing sector.

Nadec, founded in 1981, is one of the largest food and agricultural companies in the Middle East. Its activities range from dairy products, juices, vegetables, and food. It also owns one of the world's largest integrated dairy farms. The company has more than 200 products available in more than 48,000 points of sale. Its current market value is 4.6 billion riyals. The Saudi Agricultural and Livestock Investment Company (SALIC) holds the largest stake in its capital at 38.6%.

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