Nadec's quarterly profits fell 72.5% to $8.11 million

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The net profits of the National Agricultural Development Company (NADEC) declined by 72.53% in the third quarter of 2026, to about $8.11 million (about 30.4 million Saudi riyals), compared to about $29.51 million (110.67 million Saudi riyals) in the third quarter of 2025.

On a quarterly basis, NADEC's net profits decreased by 52.91% in the third quarter of 2026, to about $17.22 million (64.56 million Saudi riyals) in the second quarter of 2026.

In a statement on Saudi Tadawul today, Sunday, Nadec attributed the decline in net profits in the third quarter of this year on an annual basis, mainly to several factors, namely the cost of sales, selling and marketing expenses, and treasury income.

The cost of sales to revenue ratio increased by 7.90 percentage points compared to the same quarter of the previous year, mainly due to exceptionally higher feed and feedstock costs, freight costs and surcharges associated with regional marine disturbances. The financial impact of this increase in costs amounted to 56 million Saudi riyals during the third quarter of this year. Management expects these exceptional pressures on costs to ease as the regional operating environment gradually returns to normal.

Selling and marketing expenses increased by 12.9% compared to the same quarter of the previous year, mainly due to higher distribution costs.

Treasury income decreased by SAR 10.93 million compared to the same quarter of the previous year, mainly due to a decrease in Murabaha income.

The impact of the previous factors was offset by positive elements, represented by an increase in revenues to about 909.72 million Saudi riyals, compared to 843.61 million Saudi riyals for the same quarter of the previous year, an increase of 7.84%. This was mainly due to the growth in sales of the protein, dairy and food processing sectors by 100.21% and 1.15%, respectively. The growth of the protein, dairy and food manufacturing sectors contributed to reducing the impact of the decline in agricultural sector sales by 12.31%.

During the first nine months of 2026, Nadec’s net profits decreased by 42.7% to about $50.31 million (188.66 million Saudi riyals) compared to a net profit of about $87.83 million (329.35 million Saudi riyals) in the first nine months of 2025.

Director of the Zad Consulting Center, Hussein Al-Raqeeb, said that the companies “Nadek” and “Almarai” bore the high costs of shipping and feed without burdening them with consumers.

He added that the sales growth of “Almarai” reached 11% and “Nadec” 8% without raising prices, which reflects the strength of consumer demand.