NADEC fundamentals strong, cost pressures temporary: CEO

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

National Agricultural Development Co.’s (NADEC) core business fundamentals remain strong despite temporary external cost pressures from regional supply chain and logistics disruptions, which have weighed on margins and profitability, said CEO Solaiman Altwaijri.

In a statement accompanying the company's financial results, Altwaijri said NADEC is confident that the current cost pressures are temporary and that the company is well positioned to turn its current investment phase into sustainable growth, stronger margins, and long-term shareholder value.

He added that the company recorded revenue growth in Q2 2026, supported by the continued development of its business portfolio and the growing contribution of its strategic business segments.

Altwaijri said the dairy and food manufacturing segment remains the cornerstone of the company's operations due to its large operating scale, while the protein segment has become an increasingly important driver of growth as the company expands into new food categories.

He noted that the company is on track to launch packaged red meat products through major retail chains by year-end, with these investments expected to make a more meaningful contribution to earnings.

Altwaijri also said NADEC continues to invest in its agricultural segment as a strategic platform for future growth.

He added that the company remains focused on disciplined capital allocation, efficient working capital management, and navigating a higher-than-normal cost environment in the near term.

According to data available with Argaam, NADEC's net profit fell to SAR 158.3 million in H1 2026, compared with SAR 218.7 million a year earlier. Q2 2026 net profit stood at SAR 64.6 million.