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Saudi food firms face shipping costs
Saudi food companies' profits are significantly affected by rising shipping and feed costs due to maritime disruptions. For example, Nadec experienced a 42.7% decline in profits during the first nine months of 2026, with a financial impact of 56 million SAR in the third quarter resulting from these increased expenses. Conversely, Almarai managed to maintain its profit levels almost unchanged, despite a 10% increase in its revenues, as the rising costs only had a limited impact on its profit margins. The results indicate that higher shipping and feed costs are putting pressure on profit margins, but some companies have managed to absorb these pressures by improving their sales mix and productivity, with expectations that these pressures will gradually ease as the operating environment returns to normal.
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