NADEC turns to losses of SAR 7.8 mln in 9M 2021

National Agricultural Development Co. (NADEC) reported a net loss after Zakat and tax of SAR 7.8 million for the first nine months of 2021, compared to a net profit after Zakat and tax of SAR 104.9 million in the prior-year period.

The loss was due to a 5.09% year-on-year (YoY) decline in revenue as sales of dairy and food processing sector declined 2.61%. In addition, sales of the agricultural sector declined 42.15% amid value-added tax (VAT) rate changes in July 2020.

The cost of sales rose by 3.02% YoY because of increased direct material costs due to the cancellation of government subsidies on certain items of animal feeds. The general and administrative expenses increased 3.96% YoY. Meanwhile, selling and marketing expenses decreased 13.13% YoY as marketing and promotional activities spending declined.

The company reported a net profit after Zakat and tax of SAR 3.2 million for Q3 2021, compared to a net loss after Zakat and tax of SAR 44.9 million in the same quarter last year.

On a sequential basis, the company turned to profit against a loss of SAR 17.35 million in Q2 2021.

Total shareholders’ equity, excluding minority interest, fell 4.85% YoY to SAR 1.47 billion in the first nine months of 2021.

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