NADEC Q1 2026 profit down 9% to SAR 93.7M

National Agricultural Development Co. (NADEC) reported a net profit of SAR 93.7 million in Q1 2026, falling 9% from SAR 103.4 million a year-earlier.

The annual drop in earnings was mainly driven by a 9.25% year-on-year (YoY) decrease in revenues.

Lower revenues were due to a SAR 101.72 million fall in agricultural segment sales, alongside a 2.52% decline in net revenue from the dairy and food processing segment.

Gross profitability was also pressured as the cost of sales-to-revenue ratio rose by 1.44%, mainly due to a shift in product mix and higher raw material costs.

In addition, the company recognized SAR 5.9 million in losses, representing its share in the losses of its joint venture, Alraie National Livestock Co., for 2025.

Despite this, protein segment sales rose 29.85% YoY during the quarter, while the company recorded a non-recurring gain of SAR 40.2 million from the reversal of impairment losses on trade and other receivables, following the collection of previously written-down balances.

On a sequential basis, net profit grew 46.4% compared to SAR 63.99 million in Q4 2025.

The improved quarterly performance was supported by a 9.1% quarter-on-quarter (QoQ) rise in revenues, driven by a 48.5% QoQ surge in protein segment sales and a 12.7% QoQ increase in dairy and food processing sales, partially offset by a SAR 53.3 million decline in agricultural segment sales.

Profitability was further supported by a 0.95% QoQ decline in the cost of sales-to-revenue ratio, mainly due to product mix changes, as well as a 7.62% QoQ drop in general and administrative (G&A) expenses, driven by lower professional consulting costs.

However, selling and marketing expenses rose 8.55% QoQ, mainly due to higher branding costs, while agricultural segment sales continued to weigh on overall performance.

Total shareholders’ equity (no minority interest) stood at SAR 4.7 billion as of March 31, 2026, up from SAR 4.4 billion a year earlier.

View More Financial Results