Nadec President: Feed and shipping pressures have affected profit margins...and expansion plans are continuing

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The CEO of the National Agricultural Development Company (NADEC), Dr. Sulaiman Al-Tuwaijri, said that the company continues to operate in a regional environment characterized by fluctuations, which has led to high feed, shipping and distribution costs and imposed pressure on profit margins, indicating that these factors outside the company’s control may continue until the conditions surrounding business return to normal levels.

The net profits of the National Agricultural Development Company (NADEC) declined by 72.53% in the third quarter of 2026, to about $8.11 million (about 30.4 million Saudi riyals), compared to about $29.51 million (110.67 million Saudi riyals) in the third quarter of 2025.

On a quarterly basis, Nadec’s net profits decreased by 52.91% in the third quarter of 2026, compared to about $17.22 million (64.56 million Saudi riyals) in the second quarter of 2026.

Al-Tuwaijri explained in his comment in the statement announcing the financial results for the third quarter of 2026, that “NADEC” is currently focusing on raising operational efficiency and enhancing the flexibility of supply chains, in addition to improving capital allocation and working capital management, stressing that the company’s current evaluation does not indicate any fundamental impact on its medium- and long-term strategic plans despite the existing challenges.

He added that the company's priorities during the next phase include launching packaged red meat products designated for retail sale under the "Nadek" brand, and benefiting from the operational capabilities of the Haradh slaughterhouse and its joint project with Hilton Foods, as well as developing agricultural activities with higher added value that rely on modern technologies. He stressed that these initiatives come within the framework of the company's commitment to supporting food security in the Kingdom and enhancing sustainable value for shareholders.

Al-Tuwaijri pointed out that the results of the third quarter reflect the success of the company’s strategy in building an integrated and diversified Saudi food platform, pointing out that the protein sector continues to achieve strong growth, while the dairy and food manufacturing activity provides a broad operating base and an established brand.

He added that Nadec aims to transform these components, supported by its thoughtful investments, into sustainable growth and higher profitability in the coming years.