6 Hrs
Source:
الاقتصادية
Nadec profits fall 44% to 6.4M riyals
Nadec's profits declined by 44% year-over-year in the second quarter of 2026, reaching 6.4 million riyals, despite a 5.5% increase in revenues to 876.4 million riyals. The decrease in profits is mainly attributed to rising costs for feed, shipping, and additional fees related to regional maritime disruptions, which imposed an estimated 45 million riyals in expenses on the company—almost equivalent to the entire increase in its revenue. Although the protein sector grew by 99% and the agricultural sector by 41%, the rising costs led to narrower profit margins and a 28.2% decline in operating profit, which fell to 78.6 million riyals. High costs also impacted net profits, which were further affected by losses from the company's investment in Al-Raee National for Livestock. However, with the normalization of regional conditions, cost pressures are expected to decrease over time.
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