Saudi Arabia's National Agricultural Development Company (Nadec) has announced solid results for the first half of 2024 with a 8.9% jump in its net profit for the period and posting a revenue of SAR1.64 billion ($437 million), up 7.3% over last year.  

 

Announcing the results for the six-month period ending on June 30, 2024, Nadec said its net profit grew over two-fold to hit SAR213.2 million compared to the last year's figure of SAR102.8 million, while its total comprehensive income rose from SAR102.79 to SAR215.45. 

 

The company’s revenue for the current period increased by 7.32% compared to the similar period last year, this was mainly on account of increase in sales of dairy and food processing sector by 2.04%, added to the revenue of SAR92.78 million from the new segment (protein) and this increase partially offset by decrease in Agri sales by 21.87%, it stated.

 

Nadec's revenue for the current quarter increased by 0.53% compared to the similar quarter last year, this was mainly on account of revenue of SAR43.9 million from the new segment (protein) and this increase partially offset by decrease in sales of raw milk and agri sector, it stated.

 

The company’s net profit in the current quarter surged to SAR112 million from SAR65.13 million last year.

 

Operating profit of the current quarter increased by 24.73% compared to the similar quarter last year primarily due to increase in sales, decrease in cost of sales percentage over revenue, decrease in selling & marketing and decrease in impairment losses for trade & other receivables this increase is partially offset by increase in general & admin expenses.

 

According to Nadec, the gross profit of the current period increased by 8.23% compared to the similar period last year, due to a 7.3% jump in the revenue and decrease in percentage of cost of sales over the net revenue 0.32%.

 

The operating profit for the current period reached SAR 195.57 million compared to SAR136 million for the similar period last year with an increase of 43.81%.

 

The shareholders’ equity as of 30 June 2024 (no minority equity) stood at SAR3.8 billion compared to SAR3.59 billion as of December 31, 2023 with an increase of 5.07%.

 

The earnings per share for the current period is SAR 0.71 compared to earnings per share of SAR 0.65 for the similar period last year, it added.-TradeArabia News Service