NADEC turns to profit of SAR 95.5 mln in 2022; Q4 at SAR 25.1 mln

National Agricultural Development Co. (NADEC) swung to a net profit after Zakat and tax of SAR 95.5 million by the end of 2022, from a net loss after Zakat and tax of SAR 285 million a year earlier. 

The company’s revenue rose 18.57% year-on-year (YoY) in 2022 due to a 19.08% increase in sales of the dairy and food processing business and a 7.76% rise in the sales of the agricultural segment.

However, the cost of sales fell 2.24% YoY amid a decrease in the provision for slow and non-moving inventories.

In addition, the general and administrative expenses declined 6.12% YoY in 2022 due to a reduction in professional and consultancy fees. This decrease was partially offset by increased information technology expenses and employee benefit costs.

Selling and marketing expenses increased 0.88% YoY in 2022 due to the increase in distribution costs. Finance cost increased 52.55% YoY, mainly on account of an increase in the interest rates due to higher SAIBOR YoY.

NADEC turned to a net profit after Zakat and tax of SAR 25.1 million for Q4 2022, against a net loss after Zakat and tax of SAR 277.26 million in the same quarter last year.

The company’s net loss after Zakat and tax narrowed from SAR 27.76 million in Q3 2022. 

Total shareholders’ equity, no minority interest, grew 8.31% to SAR 1.29 billion in 2022 from SAR 1.19 billion in 2021. 

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