NADEC CEO says higher contribution from protein, agriculture segments weigh on margins

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

Solaiman Altwaijri, CEO of the National Agricultural Development Co. (NADEC), said the protein segment recorded net revenues of SAR 83 million in Q4 2025, marking a 66% increase compared to the same quarter last year.
 

He told that profitability expectations for the segment remain stable.
 

In an interview with Argaam, Altwaijri explained that the contribution of the company’s segments to revenues during the fourth quarter was distributed as follows: dairy and food at 84%, protein (9%), and agriculture (7%).
 

He added that the central and eastern regions recorded the highest levels of demand during the fourth quarter, achieving notable growth.
 

The decline in gross profit margin from 37% in 2024 to 33.5% in 2025 was mainly due to the higher contribution from the protein and agriculture segments, which operate with lower profit margins.
 

Commenting on the decline in Q4 profits, the CEO said it was primarily attributable to a non-recurring gain from the IPO of Arabian Mills recorded in the previous year, in addition to a SAR 27 million loss resulting from the fair value impact of olive oil during Q4 2025. Excluding these two effects, net profit for Q4 2025 would amount to around SAR 91 million, in line with the same period last year.
 

Altwaijri pointed out that the financial impact of fuel price adjustments resulted in a 1.5% increase in operating costs in 2025. He stressed that the company is working to mitigate this impact by improving operational efficiency, enhancing resource and fuel utilization efficiency. This is in addition to expanding renewable energy sources as part of its sustainability strategy, and continuing R&D efforts in sustainable technologies to boost productivity and reduce reliance on conventional fuels.
 

He confirmed that NADEC's outlook for Q1 2026 is in line with its strategic and operational plan, with no material events expected.
 

According to Argaam data, NADEC’s profits declined to SAR 393.4 million by the end of 2025, compared to SAR 774.6 million in 2024, while Q4 profits stood at SAR 64 million.