NADEC’s Profits Surge 169% to SAR 101 Million in First Quarter

The National Agricultural Development Company (NADEC) has announced a remarkable jump in net profit to 101 million riyals during the first quarter of 2024, compared to 38 million riyals in the same quarter of the previous year, representing a staggering 169% increase. This announcement follows the release of estimated financial results for the period ending on March 31, 2024 (3 months).

Operating profit for Q1 2024 reached 97 million riyals, marking a substantial 70% growth from 57 million riyals in the same quarter of the previous year.

Earnings per share for Q1 2024 amounted to 0.34 riyals, compared to 0.24 riyals in the corresponding quarter of the previous year.

The company’s revenue for the current quarter increased by 14.43% compared to the similar quarter last year, primarily driven by an uptick in sales within the dairy and food processing sector by 6.02%, along with sales from the new protein segment amounting to SAR 48.82 million, representing 6.5% of total revenue in the similar quarter last year.

Despite certain expenses increasing due to business growth, such as selling and marketing expenses rising by 14.84% and general and administrative expenses increasing by SAR 18.70 million, NADEC’s gross profit increased by 16.02% and operating profit surged by 70.06% compared to the similar quarter last year.

In comparison to the previous quarter, NADEC’s net profit for Q1 2024 decreased to SAR 101.33 million from SAR 123.98 million, primarily due to increased selling and marketing expenses, absence of one-time grants and compensation received in the previous quarter, and increased zakat expenses. However, revenue, gross profit, and earnings per share showed positive trends compared to the previous quarter.

Key financial indicators for Q1 2024 include a comprehensive income of SAR 102.87 million, representing a significant increase from SAR 37.47 million for the similar quarter last year, and a decrease from SAR 123.84 million for the previous quarter. Total revenue for Q1 2024 reached SAR 857.58 million, up 14.43% from the similar quarter last year and 7.12% from the previous quarter.

Shareholders’ equity as of March 31, 2024, was SAR 3,693.92 million, up 2.81% from December 31, 2023, and a significant increase of 177.19% from March 31, 2023, mainly due to the issuance of new shares during Q4 2024 through a rights issue.

Overall, NADEC’s robust financial performance in Q1 2024 underscores its resilience and strategic growth initiatives in navigating market challenges and capturing emerging opportunities.