Business · Companies · 1 day ago
Nadec’s third-quarter profit falls 72.5% as costs rise
Saudi food company Nadec’s third-quarter profit fell 72.5% from a year earlier to 30.4 million riyals.
The company said higher feed and shipping costs added 56 million riyals to its costs during the quarter, as regional disruptions affected transport and supply.
Revenue still rose 8% to 909.7 million riyals, helped by protein sales more than doubling and modest growth in dairy and food processing.
Nadec’s chief executive said the costs are squeezing profit margins, but the company does not expect them to change its medium- or long-term plans.
Its near-term priorities include preparing packaged red-meat products for retail sale, using its Haradh slaughterhouse and joint venture with Hilton Foods, and developing higher-value, technology-based farming.
The company says it will focus on controlling operations and strengthening its supply chain while these pressures continue.
Nadec’s third-quarter net profit fell 72.5% year on year to 30.4 million riyals.
The company attributed the decline to higher sales costs, increased selling and marketing expenses, and lower treasury income.
Regional disruptions added 56 million riyals to costs during the quarter, including higher feed, shipping and related charges.
Quarterly revenue rose 8% to 909.7 million riyals, supported by growth in the protein and dairy and food-processing businesses.
Nadec said it plans to prepare for retail sales of packaged red-meat products while continuing its medium- and long-term strategy.
- Who
- National Agricultural Development Company (Nadec).
- What
- Third-quarter net profit fell 72.5% year on year to 30.4 million riyals.
- When
- The third quarter of 2026.
- Where
- Saudi Arabia; the company’s regional operating environment was affected by disruptions to shipping.
- Why
- Higher sales costs, selling and marketing expenses, and lower treasury income reduced profit. Nadec said regional disruptions raised feed and shipping costs.
This story does not have two clearly opposing sides.
Nadec announced changes to a financing agreement for its subsidiary, reducing the financing cap from 1.1 billion riyals to 750 million riyals and extending the grace period to up to four years.
Nadec recorded net profit of 30.4 million riyals, down 72.5% from the same quarter a year earlier.
Nadec’s results and chief executive’s comments were reported by news outlets.
- Third-quarter net profit
- 30.4 million riyals, down 72.5% year on year
- Third-quarter revenue
- 909.7 million riyals, up 8%
- Additional cost impact
- 56 million riyals during the quarter
- Protein sales
- Up 100.2%
- Dairy and food-processing sales
- Up 1.15%
- Agricultural sector sales
- Down 12.31%
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What people are saying
We work in a volatile regional environment that has led to higher feed, shipping and distribution costs and put pressure on profit margins, and these burdens outside our control may continue until the conditions surrounding our business return to normal.
Our operational priorities remain clear: preparing to launch packaged red-meat products ready for retail under the Nadec brand, making use of the potential of the Haradh slaughterhouse and our joint venture with Hilton Foods, and developing a higher-value, technology-based agricultural business.