Nadec CEO: The fundamental foundations of our business remain strong.. and cost pressures are temporary

Dr. Sulaiman bin Abdulaziz Al-Tuwaijri, CEO of Nadec,

Al-Tuwaijri's remarks come as Nadec continues to implement its expansion strategy in the dairy and protein sectors.

Al-Tuwaijri explained that temporary external cost pressures resulting from disruptions in supply chains and logistics services have impacted margins and profitability, but the company's fundamental foundations remain strong. He expressed confidence that these pressures are temporary, and that Nadec is in a position to transform the current investment phase into sustainable growth, stronger margins, and long-term value creation for shareholders. He pointed out that revenues grew in the second quarter of 2026, supported by the development of the business portfolio and the contribution of strategic sectors. He affirmed that the dairy and food manufacturing sector remains a key focus, while the role of the protein sector in growth is increasing.

In the protein sector, he mentioned that the company is making progress towards launching packaged red meat products through major retail outlets by the end of the year, expecting that the contribution of these investments to profits will become more evident. He added that the company continues to invest in agriculture as a future strategic platform, focusing on disciplined capital deployment, working capital management, and dealing with a higher-than-usual cost environment in the near term. According to Argaam data, Nadec's profits fell to SAR 158.3 million at the end of the first half of 2026 compared to SAR 218.7 million in the same period of 2025, and second quarter profits reached SAR 64.6 million.

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The company recorded a decline in first-half 2026 profits to SAR 158.3 million compared to SAR 218.7 million in the same period last year. However, Al-Tuwaijri believes that these pressures are temporary, and that the company seeks to enhance sustainable growth and create value for shareholders. The protein sector is focused on as a promising area for future expansion.