NADEC incurs SAR 7.3 mln loss in FY2019

The National Agricultural Development Company (NADEC) reported a net loss after Zakat and tax of SAR 7.3 million for fiscal year 2019 compared to net profit of SAR 1.7 million in FY2018. 
 

These losses were attributed to loss of derivatives worth SAR 42.94 million, costs of project land development in Sudan worth SAR 79.98 million, increase in selling and marketing expenses by 2.35% due to higher sales volumes, rise in finance costs by 11.49% on higher interest rates, and increase in Zakat expenses by SAR 1.98 million.
 

However, the losses were partially offset by higher revenues by 6.17% due to increased demand, improved cost of revenue by 0.98% due to better operating efficiency, lower general and administrative expenses by 3.57%, an increase in other income and costs, in addition of lower losses from an impairment in agricultural assets.

In Q4 2019, the company widened its net losses by 25.3% to SAR 60 million.