Riyadh - Mubasher: National Agricultural Development Company (Nadec) posted a 43.99% plunge in net profit for the second quarter (Q2) of 2026, with earnings falling to SAR 64.56 million from SAR 115.26 million in the same period last year.
The profit contraction occurred despite a 5.54% increase in quarterly revenue, which reached SAR 876.44 million, according to the financial results.
The company attributed the lower profitability to an exceptional rise in costs for animal feed and shipping, alongside surcharges linked to regional maritime disruptions.
These factors had a combined financial impact of SAR 45 million during the quarter. Selling and marketing expenses also rose by 5.42% due to higher distribution costs. These pressures were partially offset by a one-time gain of SAR 32.84 million from the reversal of impairment losses on old receivables.
Revenue growth was driven by the protein and agriculture segments, which expanded by 99.19% and 40.99%, respectively. However, dairy and food processing sales fell by 3.67%.
For the first six months of 2026, the company recorded a net profit of SAR 158.27 million, down 27.62% from SAR 218.68 million in the previous year.
Earnings per share (EPS) for the half-year period stood at SAR 0.53, while total shareholders' equity reached SAR 4.82 billion.
In 2025, the company’s net profits after tax fell by 49.22% year-on-year (YoY) to SAR 393.35 million from SAR 774.63 million.
