By Fatima Al-Kashef

Saudi Arabia's Nadec, a food and agriculture company listed on the Tadawul main market, saw its profits decline by about 44% year-on-year during the second quarter, due to higher feed, shipping and fees related to regional maritime disruptions, despite the company's sales growth, according to its results released on Monday.

Profit breakdown

Net profit attributable to shareholders reached SAR 64.6 million (USD 17.2 million) during the quarter, compared to SAR 115.3 million a year earlier, while revenues rose 5.5% to SAR 876.4 million, driven by business growth.

The impact of increased costs of feed, nutrition materials, shipping and additional maritime fees amounted to approximately 45 million riyals during the quarter alone.

background

(According to official data)

Nadec's results come as trade risks in the Gulf have escalated since the outbreak of war on February 28, followed by attacks on ships and disruption to navigation through the Strait of Hormuz.

Nadec is not the only company in the sector that has been affected, as the net profit attributable to shareholders of the well-known Almarai, which also specializes in food industries and is listed on Tadawul, declined by about 2% to 635.7 million riyals during the same quarter, affected by the high costs of shipping feed for the dairy sector, in addition to the increase in distribution costs as a result of higher energy expenses.

The food and beverage market in Saudi Arabia is valued at approximately $42 billion.

Nadec was founded in 1981 and listed on the Saudi Stock Exchange in 1993. It operates across key sectors including dairy, food processing, and agriculture. Saudi Arabia remains its primary market, accounting for approximately 87% of the company's revenue in 2025. The company also has operations in Dubai and Bahrain, along with a network of agents and distributors in Kuwait and Sharjah, as well as other markets in the Middle East, North Africa, and other countries worldwide.

(Prepared by: Fatima Al-Kashef, Edited by: Yasmin Saleh, Contact: zawya.arabic@lseg.com )

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