Naf H1 sales rise on 2nd production line; feed market demand stable: CEO

Basel Al-Harbi, CEO of Naf Co. for Feed for Industry

Naf Co. for Feed for Industry launched its second production line during H1 2026, leading to improved operational capabilities and ability to meet the growing demand, CEO Basel Al-Harbi told Argaam in an interview.

He expects the impact to become more evident in the second half of the year as the company continues to utilize its available production capacity and improve operating efficiency, supporting growth in production and sales.

Naf’s profit growth during H1 2026 followed higher sales and the acquisition of new customers, improved operational efficiency and better utilization of production capacity, alongside market expansion and the launch of the second production line.

Global geopolitical developments weighed on the feed sector, particularly via shipping costs, supply chains, and raw material prices, Al-Harbi noted. However, demand for feed in the Saudi market remains fundamentally stable due to its direct link to livestock and poultry production.

“We are working to enhance supply-chain resilience and diversify our sources of supply, while efficiently managing inventory and procurement to mitigate the impact of global market volatility,” he added.

Feed prices were affected during the period by changes in raw material prices, supply-chain costs, and market conditions. However, the company’s revenue growth was not driven solely by price changes, but primarily by higher sales volumes, an expanded customer base, and improved operational performance.

The CEO expects feed prices in H2 2026 to remain linked to movements in global raw material prices and shipping and supply costs, as well as local supply and demand conditions. The company will continue to focus on managing raw material costs and improving operational efficiency to maintain the competitiveness of its products and profit margins, according to the CEO.

About Naf’s plans to transfer to the Main Market, Al-Harbi said the company’s strategy through 2030 includes moving to TASI as one of its key objectives. Any developments or decisions in this regard will be announced in accordance with the relevant requirements and regulations.

Al-Harbi pointed out that the company is focusing in the coming phase on strengthening its position in the feed sector by expanding into new markets, growing its customer base, and maximizing utilization of its existing production capacity.

“We are continuously evaluating investment opportunities that could support its strategy and create value for shareholders, whether through expansion or acquisitions, with a focus on activities related to the feed sector, supply chains, and food security, whenever opportunities are strategically and financially suitable,” the top executive said.

According to data available with Argaam, Naf’s net profit amounted to SAR 5 million in H1 2026, up 199% year-on-year from SAR 1.7 million.