Al-Jouf Agricultural Reports SAR 2.1M Net Profit in Q1 2026
ALJOUF 6070.SA | 0.00 |
| Element List | Explanation |
|---|---|
| Date of Posting the Previous Announcement of Development on Saudi Exchange’s Website | 2026-05-06 Corresponding to 1447-11-19 |
| Hyperlink to the Previous Announcement | Click Here |
| Change on the Development |
The Company would like to announce to its esteemed shareholders that it recorded a net profit of SAR 2.1 million for the first quarter of 2026, compared to a net profit of SAR 34.7 million for the same quarter of the previous year, representing a decrease of SAR 32.6 million. The Company would also like to clarify to its shareholders that the decline in profitability during this quarter is attributable to the following factors:
1- The cost of agricultural products used in the production of industrial products increased by SAR 25.4 million due to abnormal climatic conditions during the 2025 agricultural season, which led to higher production costs.
2- The average selling prices of industrial products decreased by SAR 18.7 million as a result of pricing pressures from imported products, in addition to a decline in olive oil sales due to the change in the seasonality of the month of Ramadan during the period.
Notwithstanding the above, the Company achieved growth in sales of french fries products compared to the same quarter of the previous year, contributing positively by approximately SAR 8.0 million. Furthermore, the Company implemented several initiatives aimed at improving operational efficiency and reducing costs, which resulted in a reduction in expenses of approximately SAR 3.5 million compared to the same quarter of the previous year. These initiatives partially mitigated the impact of higher costs and lower selling prices on the financial results for the period. The Company affirms its continued commitment to enhancing operational efficiency, strengthening cost management, and improving the efficiency of supply chain and production processes, in support of improved operational and financial performance in the coming periods and a strong return to growth, God willing. |
| Financial Impact on the change | N/A |
Year-on-Year Performance Drivers
Net profit declined significantly to SAR 2.1 million in Q1 2026 from SAR 34.7 million in Q1 2025, representing a decrease of SAR 32.6 million. The decline was primarily driven by increased agricultural product costs of SAR 25.4 million due to abnormal climatic conditions and reduced average selling prices of SAR 18.7 million from import pricing pressures and lower olive oil sales. However, french fries sales growth contributed positively by SAR 8.0 million and operational efficiency initiatives reduced expenses by SAR 3.5 million, partially offsetting the negative impacts.
Quarter-on-Quarter Performance Drivers
Net profit dropped significantly from SAR 34.7 million to SAR 2.1 million year-over-year due to increased agricultural input costs of SAR 25.4 million from abnormal climate conditions and reduced selling prices by SAR 18.7 million from import competition and seasonal factors affecting olive oil sales. However, french fries sales growth contributed positively by SAR 8.0 million and operational efficiency improvements reduced expenses by SAR 3.5 million, partially offsetting the negative impacts.
Original announcement:
https://www.saudiexchange.sa/wps/portal/saudiexchange/newsandreports/issuer-news/issuer-announcements/issuer-announcements-details/?anId=95077&anCat=1&cs=6070&locale=arImportant 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.