On 2026-08-05 09:01:40 (Saudi Time), Al-Jouf Agricultural Development Co. announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ending 30 June 2026, sales/revenue declined marginally by 0.593% YoY to SAR 323.26 million (converted from SAR 323,260 thousands) from SAR 325.19 million, primarily due to lower selling prices for certain products — particularly frozen French fries — driven by pricing pressures from imported products, despite higher agricultural segment sales volumes. Net profit attributable to shareholders fell sharply by 78.272% YoY to SAR 11.53 million from SAR 53.08 million, a decrease of SAR 41.6 million, mainly driven by a SAR 46.2 million increase in cost of sales for industrial products resulting from unusual climatic conditions during the 2025 agricultural season that raised production costs, a SAR 24.2 million negative impact from declining industrial product selling prices due to import competition, and a SAR 5.6 million decline in Al-Jouf Olive Oil sales, as well as higher Zakat expenses of SAR 1.3 million. These headwinds were partially offset by SAR 27.8 million in positive contributions from growth in French fries and other product sales, along with approximately SAR 2 million in operating expense reductions achieved through efficiency initiatives.

Quarter-on-Quarter Performance Drivers

QoQ revenue declined 7.21% to SAR 155.59 million (from SAR 167.68 million in the prior quarter), primarily due to lower selling prices for certain products driven by pricing pressures from imported goods, particularly frozen French fries, despite higher agricultural segment sales volumes. Net profit surged 361.265% QoQ to SAR 9.48 million (from SAR 2.06 million), driven by improved profit margins on certain products following the commencement of using new, lower-cost crops from the 2026 season, partially offset by declining average selling prices, higher selling and distribution expenses, and increased Zakat expenses.

Other Items

The external auditor issued an unmodified conclusion with no additional comments, reservations, or other matters noted. No material risks such as going concern uncertainties or debt covenant breaches were disclosed. Certain comparative figures for the prior period have been reclassified to conform to the current period's presentation. No accumulated losses or fair value changes in investment properties were reported. Total shareholders' equity (after deducting minority equity) stood at SAR 800,012 thousands as of the current period, compared to SAR 793,022 thousands in the same period of the prior year, representing an increase of 0.881%. Earnings per share for the current period were SAR 0.38, compared to SAR 1.77 for the same period of the prior year. The company stated that the impact of the aforementioned climatic conditions "is expected to diminish over the coming quarters as new crops from the 2026 season enter production," and confirmed its commitment to "improving operational efficiency, strengthening cost management practices, and enhancing the efficiency of its supply chain and production operations, which are expected to support improved operational and financial performance in the coming periods and drive a strong return to growth, God willing."

Original announcement:

Important Notice: The announcement information and market data in this report are sourced directly from the Saudi Exchange (Tadawul). This summary is generated by Sahm’s proprietary AI model for informational purposes only. While we strive for accuracy, it should not be construed as financial advice or an investment recommendation.