NADEC CEO says dividend policy tied to strategy, operations

Solaiman Altwaijri, CEO of National Agricultural Development Co. (NADEC)

Solaiman Altwaijri, CEO of National Agricultural Development Co. (NADEC), said the cash dividend decision depends on several strategic and operational factors, mainly the company’s current stage and future funding requirements.

He explained in an interview with Argaam that since NADEC is undergoing an expansion phase, financial resources are currently directed toward executing its growth plans.

Altwaijri added that the company’s outlook for the remainder of 2025 remains aligned with its strategic and operational roadmap and that no major developments are anticipated.

He said Q2 2025 net profit rose on the back of a 5.1% year-on-year (YoY) increase in net revenue, driven by growth in new business segments, and although operating costs rose due to higher fuel expenses, this was offset by a 23% YoY increase in treasury income.

Commenting on the protein segment, Altwaijri stated that the red meat business, a recent addition, generated SAR 59 million in net revenue during Q2, marking a 35% YoY growth, while profitability indicators remained stable.

He noted that the dairy and food segment remained the top revenue contributor at 89%, followed by the protein segment at 7% and agriculture at 4%.

Altwaijri also pointed out that the Central and Eastern Provinces recorded the strongest demand during Q2, with both seeing significant sales growth.

According to Argaam data, NADEC’s H1 2025 net profit rose 3% to SAR 218.7 million, compared to SAR 213.2 million a year earlier, while Q2 profit reached SAR 115.3 million.