On 2026-07-20 08:04:44 (Saudi Time), The National Agricultural Development Company (NADEC) announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ended 30 June 2026, NADEC's sales/revenue declined 2.585% YoY to SAR 1,794.3 million (from SAR 1,841.92 million), driven primarily by lower sales in the Dairy and Food Processing sector (-3.07%) and the Agri sector (-60.93%), partially offset by growth in the Protein sector. Net profit attributable to shareholders fell 27.624% YoY to SAR 158.27 million (from SAR 218.68 million), mainly due to the revenue decline, a 5.04% increase in cost of sales as a percentage of revenue caused by exceptional rises in feed and feeding material costs, shipping costs, and war surcharges related to regional maritime disruptions, higher selling and marketing expenses (+3.82%), a SAR 13.13 million decrease in treasury income from lower deposit returns, and SAR 15.02 million in recognized losses from the Al Raie National Livestock Company joint venture (versus SAR 0.50 million in the prior period). These negative factors were partially offset by a non-recurring gain of SAR 73.03 million from the reversal of impairment losses on old receivables collected during the period.

Quarter-on-Quarter Performance Drivers

QoQ revenue declined 4.51% to SAR 876.44 million (from SAR 917.86 million in Q1 2026), driven by lower sales in the Dairy and Food Processing and Protein sectors, partially offset by higher Agri sector sales, with the decline consistent with normal seasonal patterns following the elevated Ramadan/Eid period in Q1. Net profit fell 31.11% QoQ to SAR 64.56 million (from SAR 93.71 million), as the revenue decline was compounded by a 2.29% increase in cost of sales as a percentage of revenue due to exceptional rises in feed costs, shipping costs, and war surcharges related to regional maritime disruptions. These negative factors were partially offset by a SAR 11.51 million increase in other income from higher dividend income and scrap sales.

Other Items

NADEC's interim financial results for the six months ended 30 June 2026 received an unmodified conclusion from the external auditor, with no additional comments, reservations, or other matters noted. No accumulated losses were reported. For Q2 2026, revenue increased 5.535% YoY to SAR 876.44 million, while gross profit declined 20.321% YoY to SAR 249.52 million and operating profit fell 28.176% YoY to SAR 78.64 million, with the company attributing the gross and operating profit declines primarily to a 9.24% increase in cost of sales as a percentage of revenue driven by exceptional rises in animal feed costs, shipping costs, and war surcharges related to regional maritime disruptions, with a total financial impact of SAR 45 million during the quarter. Net profit attributable to shareholders decreased 43.987% YoY to SAR 64.56 million, further impacted by a SAR 9.19 million decrease in treasury income and SAR 9.12 million recognized as the company's share of losses from its joint venture in Al Raie National Livestock Company, partially offset by a non-recurring gain of SAR 32.84 million from the reversal of impairment losses on old receivables collected during the quarter and a SAR 9.16 million increase in other income. Total comprehensive income attributable to shareholders for Q2 2026 was SAR 106.48 million, up 37.181% YoY. For the six-month period, total shareholders' equity (after deducting minority equity) stood at SAR 4,816.21 million, up 8.071% from SAR 4,456.52 million in the same period of the prior year, and earnings per share were SAR 0.53 compared to SAR 0.72 in the prior year period. The company stated that it expects the temporary cost pressures to moderate as the regional operating environment normalizes, and noted near-term priorities including strengthening the Dairy and Food Processing sector, advancing Protein toward retail availability, integrating Al Raie within the red meat platform following the announced share purchase agreement to acquire the remaining 49% stake, and progressing the Agriculture business as an advanced strategic vertical.

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