Nadec’s profits increase to 103.4 million riyals in the first quarter of 2025

The net profit of the National Agricultural Development Company (Nadec) increased in the first quarter of 2025 by 2.1% to 103.4 million riyals, compared to 101.3 million riyals in the same quarter of last year.
According to the company’s statement on Saudi Arabia’s circulation, the company’s revenues for the current quarter increased by 17.94% compared to the same quarter of the previous year.
This is mainly due to the increase in sales of the agricultural sector by 94.70 million riyals, and the increase in sales of the protein sector by 46.45 million riyals, the dairy sector and the food industrialization of 12.72 million riyals.
Public and administrative expenses decreased during the current quarter by 5.51% compared to the same quarter of the previous year, mainly due to the decrease in the cost of employees.
The treasury income increased during the current quarter by 17.35% compared to the same quarter of the previous year, mainly due to the increase in the deposit of deposits for the sake of banks resulting from the unused accessories that resulted from the issuance of priority rights shares.
The financing costs decreased during the current quarter by 3.30% compared to the same quarter of the previous year as a result of the low rate of existing loans.
Despite the changes in the previous elements that positively affected the net profit of the company in the current quarter, some of the items have increased due to growth in business as follows:
The percentage of sales cost to revenue during the current quarter increased by 5.42% compared to the same quarter of the previous year, mainly due to the change in the product mix.
The losses of the decline in the value of commercial debtors increased by 5.73 million riyals compared to the same quarter of the previous year, mainly due to the increase in the balances of commercial debtors.
During the similar quarter of the previous year, the company confessed to 8.94 million riyals, which represents the company’s share in the profits of the investment results in the joint project, there is no such item during the same quarter of the current year.
The collection of the above elements combined affected the total profit and operational profit as follows:
The total profit increased during the current quarter by 0.94% compared to the similar quarter of the previous year, due to the increase in revenues by 17.94%. This increase in part is partially an increase in the percentage of sales cost to net revenue by 5.42%.
The operational profits for the current quarter increased by 2.01% compared to the same quarter of the previous year, mainly due to the increase in sales, a decrease in public and administrative expenses, and this increase was partially met with an increase in the percentage of sales cost to revenues, and an increase in losses of decrease in the value of commercial debtors and other city balances.
The company’s net profit for the current quarter reached 103.42 million riyals, compared to a net profit of 448.05 million riyals for the previous quarter, due to:
During the previous quarter, achieved profits of 103.19 million riyals were recognized as a result of selling 30 % of the investment owned by the Arab Mills Company, as a result of the general offering and the inclusion of the company. Unrealized gains were also recorded at the fair value on the day of listing at the amount of 253.32 million riyals. From this quarter, any changes in the fair value are recorded within the other comprehensive income, according to the international standard of financial reports No. (9).
The percentage of sales cost to revenue during the current quarter increased by 3.71% compared to the previous quarter, mainly due to the increase in the product mixture.
The sales and marketing expenses increased during the current quarter compared to the previous quarter by 28.11%, mainly due to the increase in spending on the brand marketing and also due to the increase in distribution costs due to the increase in sales of the agricultural sector and the increase in the costs of external employees.
Despite the changes in the previous elements that negatively affected the company’s net profit in the current quarter, there are other elements that positively affected the net profit of the current quarter as follows:
The company’s revenues for the current quarter increased by 29.40% compared to the previous quarter, mainly due to the increase in sales of the agricultural sector by 88.91 million riyals, and increasing the sales of the dairy sector and food manufacturing in the amount of 96.78 million riyals and the sales of the protein sector in the amount of 45.55 million riyals.
Public and administrative expenses decreased during the current quarter by 8.94% compared to the previous quarter, mainly due to the decrease in the cost of employees.
The company recognized the losses of a decrease in the value of fixed assets of 7.02 million riyals in exchange for the excluded assets in the previous quarter, there are no losses similar to the assets in the current quarter.
During the current quarter, the Zakat expense decreased by 7.88 million riyals compared to the previous quarter due to the decline in profits.
All the above -mentioned elements combined affected the total profit and operational profit as follows:
The total profit increased during the current quarter by 16.04% compared to the previous quarter, due to the increase in revenues by 29.40%, and this increase in part was met an increase in the percentage of sales cost to net revenue by 3.71% due to the above -mentioned reasons.
The operational profits for the current quarter increased by 5.57% compared to the previous quarter, mainly due to the increase in sales, the decrease in public and administrative expenses and losses of the decrease in the value of assets. This increase was partially met with a rise in the cost of sales, sales and marketing expenses.