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NADEC

04 May, 2025 08:06

The National Agricultural Development Company (NADEC) announces its consolidated financial results for the period ended 31 March 2025 (Three Months)

Element ListCurrent QuarterSimilar quarter for previous year%ChangePrevious Quarter% Change
Sales/Revenue 1,011.45857.5817.942781.6729.396
Gross Profit (Loss) 325.75322.710.942280.7216.04
Operational Profit (Loss) 99.2897.322.01394.045.572
Net profit (Loss) 103.42101.332.062448.05-76.917
Total Comprehensive Income 103.19102.870.311377.05-72.632
All figures are in (Millions) Saudi Arabia, Riyals


Element ListCurrent PeriodSimilar period for previous year%Change
Total Shareholders Equity (after Deducting Minority Equity) 4,400.123,693.9219.117
Profit (Loss) per Share 0.340.34
All figures are in (Millions) Saudi Arabia, Riyals


Element ListAmountPercentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value --
All figures are in (Millions) Saudi Arabia, Riyals


Element ListExplanation
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is The Company’s revenue for the current quarter increased by 17.94% compared to the similar quarter last year, this was mainly on account of the increase in sales of Agri segment by SAR 94.70 million, Protein segment by SAR 46.45 million and dairy and beverages segment by SAR 12.72 million.
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is The Company’s net profit in the current quarter reached to SAR 103.42 million compared to net profit of SAR 101.33 million for the similar quarter last year was due to: - Revenue: The Company’s revenue for the current quarter increased by 17.94% compared to the similar quarter last year, this was mainly on account of the increase in sales of Agri segment by SAR 94.70 million, Protein segment by SAR 46.45 million and dairy and beverages segment by SAR 12.72 million. - General and Administrative expenses: General and administrative expenses decreased in the current quarter by 5.51% compared to the similar quarter last year was mainly on account of decrease in employee costs. - Treasury income: Treasury income increased in the current quarter by 17.35% compared to similar quarter last year was mainly on account of an increase in deposits. -Finance cost: Finance cost decreased in the current quarter by 3.30% compared to the similar quarter last year was mainly due to decrease in the average loan balance. Despite the changes in preceding elements that positively impacted the net profit of the Company in the current quarter, certain expenses were increased due to growth of the business as mentioned below: - Cost of sales: Cost of sales percentage on revenue increased during the current quarter by 5.42% compared to the similar quarter last year, was mainly on account of change in product mix. - Impairment losses for trade receivables, and other receivables: Impairment losses for the current quarter increased by SAR 5.73 million compared to the similar quarter was mainly on account of increase in receivable balances. - Share of results of joint venture: During the similar quarter last year the Company recognized its share of profit from joint venture amounting to SAR 8.94 million, but no such income available in the current quarter. All the above elements collectively impacted the gross profit and operating profit as follows: -Gross profit: Gross profit for the current quarter increased by 0.94% compared to the similar quarter last year, due to the increase in revenue by 17.94% and this increase was partially offset by an increase in the percentage of cost of sales over the net revenue by 5.42%. -Operating profit: Operating profit for the current quarter increased by 2.01% compared to the similar quarter last year primarily due to an increase in sales, decrease in general and administration expenses and this increase was partially offset by increase in cost of sales percentage over revenue and an increase in impairment losses for trade receivables.
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is The Company’s revenue for the current quarter increased by 29.40% compared to the previous quarter, this was mainly on account of an increase in sales of Agri segment by SAR 88.91 million, dairy and beverages segment by SAR 96.78 million and protein segment by SAR 45.55 million.
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is The Company’s net profit in the current quarter reached to SAR 103.42 million compared to net profit of SAR 448.05 million for the previous quarter was due to: - Gain from shares in Arabian Mills for Food Products Co. (Arabian Mills): During the previous quarter the company recognized SAR 103.19 million on sales of 30% shares in Arabian Mills as part of Arabian Mills Initial public offering (IPO), and also recognized day one fair value gain of SAR 253.32 million on the date of listing of shares, from this quarter any changes in fair value of share are recorded in other comprehensive income as per IFRS 9. - Cost of sales: Cost of sales percentage on revenue increased during the current quarter by 3.71% compared to the previous quarter was mainly on account of product mix. -Selling and marketing expenses: Selling and marketing expenses increased in the current quarter by 28.11% compared to the previous quarter was mainly on account of more spending on trade marketing and the increase in distribution cost due to Agri sales increase and increase in outsourcing employee cost. Despite the changes in preceding elements that negatively impacted the net profit of the Company in the current quarter, there are other elements that positively impacted the net profit of the current quarter as follows: - Revenue: The Company’s revenue for the current quarter increased by 29.40% compared to the previous quarter, this was mainly on account of an increase in sales of Agri segment by SAR 88.91 million, dairy and beverages segment by SAR 96.78 million and protein segment by SAR 45.55 million. - General and Administrative expenses: General and administrative expenses decreased in the current quarter by 8.94% compared to the previous quarter was mainly on account of decrease in employee benefit expenses. - Impairment of Assets: Impairment provision of SR 7.02 million made for the assets which are not usable during previous quarter but no impairment of assets in the current quarter. -Zakat: During the current quarter Zakat expenses reduced by SAR 7.88 million compared to previous quarter, mainly on account of reduction in profit. All the above elements collectively impacted the gross profit and operating profit as follows: -Gross profit: Gross profit of the current quarter increased by 16.04% compared to the previous quarter, due to the increase in the revenue by 29.40% and this increase was partially offset by increase in percentage of cost of sales over the net revenue by 3.71% due to reasons mentioned above. -Operating profit: Operating profit for the current quarter increased compared to the previous quarter by 5.57% due to increase revenue, decrease in general and administrative expenses and impairment loss on assets and this increase is partially offset by increase in cost of sales and selling and marketing expenses.
Statement of the type of external auditor's report Unmodified conclusion
Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) Unmodified
Reclassification of Comparison Items Unmodified
Additional Information 1-The comprehensive income for the current quarter reached SAR 103.19 million compared to comprehensive income of SAR 102.87 million for the similar quarter last year with an increase of 0.30%. 2- The comprehensive income for the current quarter reached SAR 103.19 million compared to comprehensive income of SAR 377.05 million for the previous quarter with a decrease of 72.63%. 3-The net profit for the current quarter reached SAR 103.42 million compared to net profit of SAR 101.33 million for the similar quarter last year with an increase of 2.06%. 4-The net profit for the current quarter reached SAR 103.42 million compared to net profit of SAR 448.05 million for the previous quarter with a decrease of 76.92%. 5-Total revenue for the current quarter reached SAR 1,011.45 million compared to SAR 857.58 million for the similar quarter last year with an increase of 17.94%. 6-Total revenue for the current quarter reached SAR 1,011.45 million compared to SAR 781.67 million for the previous quarter with an increase of 29.40%. 7-The gross profit for the current quarter reached SAR 325.75 million compared to SAR 322.71 million for the similar quarter last year with an increase of 0.94%. 8-The gross profit of the current quarter reached SAR 325.75 million compared to SAR 280.72 million for the previous quarter with an increase of 16.04% 9-The operating profit for the current quarter reached SAR 99.28 million compared to SAR 97.32 million for the similar quarter last year with an increase of 2.01%. 10-The operating profit of the current quarter reached SAR 99.28 million compared to operating profit of SAR 94.04 million for the previous quarter with an increase of 5.57%. 11-The shareholders’ equity as of 31 March 2025 (no minority equity) was SAR 4,400.12 million compared to SAR 4,296.93 million as of 31 December 2024 with an increase of 2.40%. 12-The shareholders’ equity as of 31 March 2025 (no minority equity) was SAR 4,400.12 million compared to SAR 3,693.92 million as of 31 March 2024 with an increase of 19.12%. 13-The earnings per share for the current quarter is SAR 0.34 compared to earnings per share of SAR 0.34 for the similar quarter last year.

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