What was NADEC's net profit in H1 2026?

Net profit reached SAR 158.27 million, down 27.6% YoY.

What caused NADEC's profit decline?

The decline was mainly due to higher feed and shipping costs, war surcharges, and lower revenue in the Dairy and Agri sectors.

Did NADEC record any non-recurring gains?

Yes, a non-recurring gain of SAR 73.03 million from reversal of impairment losses on old receivables.

How did Q2 results compare to Q1?

Revenue declined 4.51% to SAR 876.44 million, and net profit fell 31.11% to SAR 64.56 million.

NADEC Reports SAR 158.27M Net Profit in Half-Year 2026

National Agricultural Development Co. (NADEC) announced its H1 2026 financial results, with net profit falling 27.6% YoY to SAR 158.27 million, while revenue declined 2.6% to SAR 1.79 billion, driven by higher costs and lower sales in key segments.

National Agricultural Development Co. (NADEC) (6010) reported its interim financial results for the six months ended June 30, 2026, with net profit attributable to shareholders declining 27.624% YoY to SAR 158.27 million. Revenue fell 2.585% to SAR 1,794.3 million, primarily due to lower sales in the Dairy and Food Processing and Agri sectors, partially offset by growth in the Protein sector.

Key Financial Results

Item	H1 2026	H1 2025	Change
Revenue	SAR 1,794.3M	SAR 1,841.92M	-2.6%
Net Profit	SAR 158.27M	SAR 218.68M	-27.6%
EPS	Not disclosed	Not disclosed	-

Highlights from the Statement

Revenue decline in Dairy & Food Processing (-3.07%) and Agri (-60.93%) sectors.
Cost of sales as a percentage of revenue increased by 5.04% due to exceptional rises in feed costs, shipping costs, and war surcharges related to regional maritime disruptions.
Selling and marketing expenses rose 3.82%.
Treasury income decreased by SAR 13.13 million due to lower deposit returns.
Recognized losses of SAR 15.02 million from the Al Raie National Livestock Company joint venture (vs. SAR 0.50 million in prior period).
Non-recurring gain of SAR 73.03 million from reversal of impairment losses on old receivables collected.

On a quarter-on-quarter basis, revenue declined 4.51% to SAR 876.44 million in Q2 2026 from SAR 917.86 million in Q1 2026, while net profit fell 31.11% to SAR 64.56 million.

Guidance

No specific forward guidance was provided in this announcement.

Impact on Stock

The stock may react negatively to the earnings decline, though the non-recurring gain could mitigate some downside. Investors will likely focus on cost management and the sustainability of the Protein sector growth.

What This Means for Investors

The results highlight ongoing operational challenges, particularly from elevated input costs. While the non-recurring gain provided temporary relief, the company's ability to navigate regional disruptions and control costs will be key for future performance.