NADEC turns profit on expansions, sales restructuring despite higher interest: CEO

Logo of National Agricultural Development Co. (NADEC)

National Agricultural Development Co. (NADEC) worked on expanding further and restructuring the sales segment, especially distribution, in 2022, besides introducing new products that complement the market, CEO Solaiman Altwaijri told Al Ekhbariya TV.

These factors, according to Altwaijri, supported boosting sales and lowering related expenses, which contributed to the shift to profitability last year.

However, some downsides weighed on NADEC’s 2022 earnings, including provisions and higher interest rates. Financing cost (FC) also surged by more than 50% rise, and the company is working on mitigating its direct and indirect impact, he added.

Elsewhere, in an interview with Al Arabiya TV, the CEO also said that NADEC's 2022 financial results were very solid and promising, mainly supported by the dairy and juice segment. This is in addition to the agricultural business that is also improving, albeit below expectations.

Moreover, the rise in sales by 20% was mainly due to the change in consumer sentiment in Saudi Arabia and the GCC, where the company's sales are concentrated, coupled with their shift to healthy products. In addition, product prices saw a reasonable increase, according to the executive.

NADEC's debts decreased over the past period, and currently stand at SAR 1.4 billion, Altwaijiri noted.

NADEC posted a net profit after Zakat and tax of SAR 95.5 million in 2022, against SAR 285 million losses incurred a year earlier. Q4 2022 profit amounted to about SAR 25.1 million, according to Argaam's data.