National Agricultural Development Co. (NADEC) posted a net profit after zakat and tax of SAR 3.39 million for H1 2019, a fall of 77 percent year-on-year (YoY), the company said in a bourse statement on Sunday.
The decrease can be attributed to a SAR 45.48 million in derivatives losses, an 8.06 percent rise in selling and marketing expenses, in addition to a 179.53 percent in losses from impairment of trade receivables.
The second quarter’s net profit after zakat and tax plunges 64% YoY to SAR 7.07 million due to SAR 24.71 million in derivatives losses, a 9.84 percent rise in financing costs and a SAR 2.91 million in impairment losses from trade receivables.
The company also cited higher selling and marketing expenses.
When compared to the previous quarter, NADEC incurred net losses of SAR 3.67 million in Q1 2019, on a 13.90 percent increase in revenue on higher sales of agricultural and dairy segment, and lower financing costs.