NADEC profit up 3% to SAR 218.7M in H1 2025; Q2 at SAR 115.3M

National Agricultural Development Co. (NADEC) reported an increase of 3% in H1 2025 net profit to SAR 218.7 million, compared with SAR 213.2 million a year earlier.

The company’s revenue for the current period increased by 11.79% compared to the similar period last year, this was on account of increase in sales of dairy and food processing segment by 1.79%, protein segment by 66.68% and agri segment by 274.09%.

Other expenses decreased in the current period by SAR 10.25 million compared to the previous period mainly on the decrease in losses on sale of biological assets and dividend income received.

Additionally, treasury income increased in the current period by 20.10% year-on-year (YoY), mainly due to higher deposits.

Despite the changes in the preceding elements that positively impacted the net profit of NADEC in the current period, there are other elements that negatively impacted the net profit of the current period.

Cost of sales percentage on revenue increased during the current period by 3.02% YoY, mainly on account of the product mix.

Selling and marketing expenses increased by 3.23% YoY due to the increase in distribution cost.

Impairment losses for trade receivables increased by SAR 6.35 million YoY mainly on account of the increase in receivable.

Financing cost increased in the current period by 18.67% YoY driven by the increase in interest expense on lease liability.

During the similar period last year the company recognized SAR 17.32 million which represents its share of profit from Joint venture investment but no such income during the current period.

All the above elements collectively impacted the gross profit and operating profit leading to an increase in gross profit by 2.84% YoY, due to the increase in the revenue by 11.79% and this increase is partially offset by increase in percentage of cost of sales over the net revenue 3.02%.

Operating profit for the current period increased by 0.22% YoY due to increase in revenue and decrease in other expenses and this increase was partially offset by increase in cost of sales percentage over revenue, selling & marketing expenses and impairment losses on trade receivables.

The second-quarter net earnings grew 3% to SAR 115.26 million, from SAR 111.88 million in Q2 2024.

Sequentially, NADEC’s net profits grew by 11.4% from SAR 103.4 million in Q1 2025.

Shareholders’ equity, no minority interest, rose to SAR 4.45 billion as of June 30, 2025, from SAR 3.80 billion in the year-earlier period.

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