NADEC Posts Quarterly Net Profit of 30.4 Million Riyals

what happened

According to ru.tradingview.com, the National Agricultural Development Company NADEC booked quarterly net profit of 30.4 million riyals, with sales of 909.7 million riyals. The company said the protein, dairy and food processing segments grew, while its agri segment fell 12.31%.

Cost of sales as a share of revenue rose 7.90 percentage points from the same quarter a year earlier. The main pressure came from a sharp increase in feed and feeding material costs and from higher shipping costs and surcharges tied to regional maritime disruptions. Selling and marketing expenses rose 12.90%, while treasury income and murabaha income declined.

Management expects these exceptional cost pressures to ease gradually as the regional operating environment normalizes.

why it matters

For markets this is a results report from a relatively small company, so the impact on the broader market is limited. The more useful signal is how shipping disruptions and higher feed prices are squeezing margins for food producers in the region.

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