TADCO logs SAR 43.9M loss in 9M 2024, SAR 17.4M in Q3

Tabuk Agricultural Development Co. (TADCO) turned to a net loss of SAR 43.9 million for the first nine months of 2024, compared to a net profit of SAR 105 million in the same period of 2023.

The nine-month loss was primarily due to the exclusion of revenues from a subsidiary for this period, whereas gains were recorded last year after a fair value revaluation following the loss of control over this subsidiary.

The 9M 2024 topline also declined 61% year-over-year (YoY), which negatively impacted earnings compared to the previous year amid lower demand for the company's main crop, wheat.

In Q3, 2024, TADCO’s net losses widened by 58.1% to SAR 17.22 million, from SAR 10.89 million a year earlier, as the three-month revenue fell 68% YoY.

However, on a quarterly basis, net losses shrank by 1.3% from SAR 17.60 million in Q2 2024, thanks to higher revenues from seasonal sales of fruit crops after harvest completion, the lower cost of revenues and the increased profit share from equity-accounted investments.

Total shareholders’ equity, after excluding minority interest, contracted to SAR 280.9 million as of Sept. 30, 2024, down from SAR 353.3 million in the corresponding period of the year before.

Accumulated losses amounted to SAR 107.03 million by the end of the nine-month period, representing 27.3% of capital. This was attributed to weaker revenues, higher cost of revenues, the elevated general & administrative and selling & distribution expenses.

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