NADEC Q1 2024 profit soars to SAR 101.3M

National Agricultural Development Co. (NADEC) reported a nearly three-fold increase in Q1 2024 net profit to SAR 101.3 million, from SAR 37.7 million in the prior-year period.

The profit surge was spurred by revenue, which increased by 14.43% year-on-year (YoY), mainly on account of an increase in sales of dairy and food processing segment by 6.02% YoY. Sales from new protein segment increased by SAR 48.82 million to represent 6.5% of total revenue in similar quarter last year.

The ratio of cost of sales to revenue decreased 0.51% YoY, mainly on account of the increase in the sales and decrease in animal feed prices.

The company also reported impairment losses of SAR 22 million recognized in similar quarter last year for subsidy receivable but no such impairment losses in current quarter.

It also booked an impairment provision of SAR 10.50 million made for the assets, which are held for disposal during the similar quarter last year, but no impairment of assets realized in the current quarter.

Additionally, NADEC reported finance income of SAR 21.22 million earned on bank deposits made from unused rights issue proceeds in the current quarter and no such income available in similar quarter last year.

Finance cost decreased in the current quarter by 44.75% YoY on lower average loan balance.

During the current quarter, the company recognized its share of profit from joint venture amounting to SAR 8.94 million, but no such income was recognized in the similar quarter last year.

On the other hand, selling and marketing expenses increased by 14.84% YoY, general and administrative expenses by SAR 18.70 million, and Zakat expense by SAR 14.35 million.

Compared to Q4 2023, the company’s net profit fell 18.3% from SAR 123.98 million.

Total shareholders’ equity, no minority interest, grew to SAR 3.69 billion as of March 31, 2024, from SAR 1.33 billion a year earlier.

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