NADEC profit soars to SAR 774.6M in 2024; Q4 at SAR 448.1M on Arabian Mills IPO

National Agricultural Development Co.’s (NADEC) 2024 net profit more than doubled to SAR 774.6 million, compared to SAR 302.1 million in the year-earlier period.

Revenue increased by 0.73% year-on-year (YoY) in 2024 on the back of SAR 180.29 million earnings from the new protein segment. This increase was partially offset by lower sales in dairy and beverages as well as agriculture segments.

The company also cited gains from the share sale of Arabian Mills for Food Products Co. (Arabian Mills). The shareholders of Arabian Mills, including NADEC, offered to sell 30% of their holdings in the IPO. As a result, NADEC gained SAR 103.19 million and recognized unrealized gains at fair value of SAR 253.32 million on remaining shares.
 
Meanwhile, NADEC cited a treasury income of SAR 91.42 million earned on bank time deposits in 2024 compared to SAR 3.91 million for the previous year.

Selling and marketing expenses decreased 4.96% YoY, on lower repairs and maintenance costs as well as trade marketing.

The company set aside SAR 40.50 million in provisions for other doubtful receivables in 2023, with no such provisions in the current year.

Financing costs decreased by 54.96% YoY due to the decrease in the borrowings.

In addition, general and administrative expenses for the current year increased by 10.18% compared to the last year due to an increase in employee benefit expenses and new projects.

During the current year, the company recognized Zakat expenses of SAR 52.50 million.

Net profit for Q4 2024 stood at SAR 448.1 million, an increase of more than three-fold from SAR 123.9 million a year ago.

On a sequential basis, net earnings almost tripled from SAR 113.38 million in Q3 2024.

Total shareholders’ equity, no minority interest, stood at SAR 4.29 billion by Dec. 31, 2024, compared to SAR 3.59 billion a year earlier.

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