NADEC's H1 profit down 49% to SAR 30 mln

25/07/2017 Argaam Exclusive

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National Agricultural Development Co. (NADEC), one of the largest dairy and juice producers in the Gulf, said its H1 net profit fell 49 percent year-on-year (YoY) to SAR 30.22 million due to weak market demand. Gross profit for the period declined 13.66 percent on higher fuel prices, the company said in its financial statements. 



Financials (M)

Item 6m 2016 6m 2017 Change‬
Revenues 1,147.94 1,060.58 (7.6 %)
Gross Income 447.54 386.42 (13.7 %)
Operating Income 90.50 53.86 (40.5 %)
Net Income 59.32 30.22 (49.0 %)
Average Shares 212.89 212.89 -
Earnings Per Share before unusual items (Riyals) 0.30 0.04 (87.3 %)
EPS (Riyal) 0.28 0.14 (49.0 %)

Nadec’s Q2 net profit fell 27 percent YoY to SAR 25.9 million as its total sales fell 9.39 percent YoY on weak market demand. Cost of production, however, fell 4.49 percent.

 

Compared to the previous quarter, Q2 net profit more than quadrupled, driven by a 20.7 percent hike in total sales. The company’s dairy and food processing sales rose by 15 percent in Q2, while agricultural sales jumped by 92 percent. Sales are usually affected by the seasonality and crops. Gross margin for the period increased by 10.8 percent, which helped support Q2 net income when compared to Q1. 



Current Quarter Comparison (M)

Compared With The
Item Q2 2016 Q2 2017 Change‬
Revenues 638.59 578.64 (9.4 %)
Gross Income 245.44 203.13 (17.2 %)
Operating Income 52.82 28.67 (45.7 %)
Net Income 35.57 25.89 (27.2 %)
Average Shares 212.89 212.89 -
Earnings Per Share before unusual items (Riyal) 0.18 0.02 (90.0 %)
EPS (Riyal) 0.17 0.12 (27.2 %)

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