Increased cultivation, higher crop prices boost margins, says Al-Jouf Agricultural CEO

Mazen Badawood, CEO of Al-Jouf Agricultural Development

Al-Jouf Agricultural Development Co. (JADCO) reported a net profit growth in Q4 2022, despite lower sales, driven by the company’s policy to increase production of strategic crops and optimize assets, CEO Mazen Badawood told Argaam.

This leads to cultivation over larger areas and higher productivity, Badawood said, adding that an increase in the prices of some crops reflected positively on the company’s profit margins.

Badawood classified JADCO as the top local producer of olive oil with over 5,000 tons per annum (pa), ranking first in terms of productivity and market share.

Work in the French fries factory is running as per schedule and it is 70% complete. JADCO seeks to launch pilot operations in Q3 2023 and reach the full capacity very soon, he added.

The agricultural development firm reported net earnings of SAR 51 million by end of 2022, compared to SAR 17.4 million in the year-earlier period. Q4 2022 earnings stood at SAR 9 million, according to data available with Argaam.