Improved efficiency boosts Q3 2024 profits; NADEC 2nd in market share: CEO

Solaiman Altwaijri, CEO of National Agricultural Development Co. (NADEC)

National Agricultural Development Co.’s (NADEC) third quarter net profit was bolstered by the company’s spending efficiency, CEO Solaiman Altwaijri told Argaam in a phone call. Selling, distribution and manufacturing expenses, in addition to the direct costs of products, played a major role in achieving earnings growth.

The dairy and beverages segment played a key role in Q3 2024 revenue, while the meat and agriculture segments are still in their early stages, he added.

Altwaijri said the company is optimistic on the protein and meat segment, explaining that NADEC had previously concluded a strategic partnership with Al Muhaidib Group to implement a large project in the Hail region.

The project is likely to show substantial returns starting from 2025.

He noted that Saudi Arabia is the main market for the company's products and the demand from the Kingdom constitutes more than 90% of NADEC total. The central region, especially Riyadh, displays the highest demand.

NADEC is ranked second in the Saudi market in terms of market share, he stated.

Regarding Q4 2024 profit forecasts, Altwaijri indicated that the company hopes to continue the positive results, in a way that benefits all shareholders.

According to data compiled by Argaam, NADEC reported an 83% increase in net profit to SAR 326.6 million in 9M 2024, from SAR 178.1 million a year earlier. Q3 profit stood at SAR 113.4 million.