NADEC Q1 2023 profit soars to SAR 37.7 mln

National Agricultural Development Co. (NADEC) reported an over twofold increase in Q1 2023 net profit to SAR 37.7 million, from SAR 15.1 million in the prior-year period.

The profit surge was spurred by revenue, which increased by 22.15% year-on-year (YoY), mainly on account of a rise of 26.84% YoY in the dairy and food processing sales. However, this was partially offset by a decrease in sales of agricultural segment.

The cost of sales to revenue ratio declined in Q1 2023 by 5.95% YoY on better sales and lower animal feed prices.

Gross profit leapfrogged 45.49% YoY.

Operating profit skyrocketed 124.03% YoY, thanks to higher sales and a decline in the cost of sales to revenue ratio.

The quarterly profit, however, was offset by an increase of 12.9% YoY in selling and marketing expenses, and a rise of 15.57% YoY in general and administrative expenses.

Compared to Q4 2022, the company’s net profit jumped 50% from SAR 25.1 million.

Total shareholders’ equity, no minority interest, grew by 10% to SAR 1.33 billion as of March 31, 2023, from SAR 1.21 billion a year earlier.

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