NADEC profit leaps 83% to SAR 326.6M in 9M 2024; Q3 at SAR 113.4M

National Agricultural Development Co. (NADEC) posted an 83% rise in net profit to SAR 326.6 million in the first nine months of 2024, compared to SAR 178.1 million in the prior-year period.

The profit rise was driven by a 1.77% year-on-year (YoY) increase in revenue, as the new protein segment generated SAR 130.51 million in revenue. However, this increase was partially offset by a 2.73% decrease in the dairy and food processing segment’s sales. The agricultural segment’s sales also declined by 33.64% YoY.

NADEC recognized impairment losses for trade and other receivables against SAR 40.50 million in other doubtful receivables in the first nine months of 2023. It also recognized impairment losses of SAR 10.50 million in fixed assets, against the assets held for disposal but there was no such items in the current period.

Moreover, the selling and marketing costs dropped by 6.71% YoY in 9M 2024. Financing costs (FCs) also decreased by 52.43% YoY.

The company also reported increases of 29.40% and 1.56% YoY in operating and gross profit, respectively. On the other hand, general and administrative expenses rose by 22.73% YoY in the nine-month period.

The third-quarter net earnings rose 51% to SAR 113.4 million, from SAR 75.27 million in Q3 2023, as selling and marketing expenses fell by 23.60% YoY. NADEC also reversed a provision of SAR 4.80 million.

NADEC’s FCs dropped 61.89% YoY, with operating profit growing 8.17%. Meanwhile, the third-quarter topline decreased by 8.13% on an annual basis as the sales of the dairy and food processing segment declined by 11.20%.

The company’s bottom line grew by 1.3% quarter-on-quarter (QoQ) from SAR 111.88 million, thanks to a 0.13% QoQ rise in revenue.

Shareholders’ equity, no minority interest, rose to SAR 3.91 billion as of Sept. 30, 2024, from SAR 1.47 billion in the year-earlier period.

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