NADEC Q1 2025 profit up 2% to SAR 103.4M

National Agricultural Development Co. (NADEC) reported a 2% increase in Q1 2025 net profit to SAR 103.4 million, from SAR 101.3 million in the prior-year period.

The positive performance is driven by the increase in revenue by 17.94% year-on-year (YoY), this was mainly on account of the higher in sales of agri segment by SAR 94.70 million, protein segment by SAR 46.45 million and dairy and beverages segment by SAR 12.72 million.

General and administrative expenses decreased in Q1 2025 by 5.51% YoY, mainly on account of decrease in employee costs, while treasury income increased 17.35% YoY due to higher deposits.

Finance cost decreased 3.30% YoY on lower average loan balance.

Operating profit grew 2.01% YoY primarily due to an increase in sales, decrease in general and administrative expenses and this increase was partially offset by increase in cost of sales percentage over revenue and an increase in impairment losses for trade receivables.

Meanwhile, the company recognized its share of profit from joint venture at SAR 8.94 million during Q1 2024, but no such income was available in Q1 2025.

NADEC also noted an increase in the percentage of cost of sales over the net revenue by 5.42%.

Compared to Q4 2024, the company’s net profit fell 76.9% from SAR 448.05 million.

During Q4 2024, NADEC recognized SAR 103.19 million on sales of 30% shares in Arabian Mills as part of Arabian Mills initial public offering (IPO), and also recognized day one fair value gain of SAR 253.32 million on the date of listing of shares. Starting from Q1 2025, any changes in fair value of share are recorded in other comprehensive income as per IFRS 9.

Total shareholders’ equity, excluding minority interest, grew to SAR 4.4 billion as of March 31, 2025, from SAR 3.69 billion a year earlier.

View More Financial Results