The net profit of the National Agricultural Development Company (NADEC) for the second quarter of 2026 amounted to SAR 64.56 million, compared to a net profit of SAR 115.26 million for the same quarter of the previous year, a decrease of approximately 44%.

According to a company statement on Saudi Arabia's Tadawul on Monday, the decline in net profit for this quarter is attributed to an increase in the cost of sales to revenue ratio by 9.24% compared to the same quarter last year, mainly due to an exceptional rise in feed, shipping, and additional fees related to regional maritime disruptions. The financial impact of this cost increase amounted to SAR 45 million during the second quarter, while management expects these exceptional cost pressures to ease as the regional operating environment returns to normal.

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The decline in net profit is also attributed to an increase in selling and marketing expenses by 5.42% compared to the same quarter last year, mainly due to higher distribution costs. Other expenses also increased by SAR 7.84 million compared to the same quarter last year, primarily due to higher losses on the sale of biological assets. During the second quarter, the company recognized losses of SAR 9.12 million representing its share of losses from the investment in the joint venture (Al-Ra'i National Livestock Company) for its financial results for 2025 and the first half of 2026, compared to SAR 0.50 million for the same quarter last year. Additionally, on May 3, 2026, the company announced the signing of a share purchase agreement with Anam Saudi Arabia for Trading to purchase its entire 49% stake in Al-Ra'i National Livestock Company. The transaction is subject to the fulfillment of necessary regulatory and contractual conditions and approvals, which will raise NADEC's ownership in Al-Ra'i National Livestock Company to 100%. Offsetting the decline factors in net profit were positive elements, reflected in the company's revenue increase in the second quarter to SAR 876.44 million compared to SAR 830.47 million in the same quarter last year, an increase of 5.54%. This is mainly due to sales growth in the protein and agriculture sectors by 99.19% and 40.99%, respectively. The growth in these strategic value-added sectors partially mitigated the impact of lower sales in the dairy and food manufacturing sector.