The Saudi farming giant National Agricultural Development Company (Nadec) said net profit for the third quarter of 2023 rose more than 171 percent to SAR75.27 million, from SAR27.75 million a year earlier.
Revenue jumped 22.55 percent year on year to SAR861.10 million, mainly due to a 23.37 percent increase in sales in the dairy and food processing sector and 29 percent higher sales in the agriculture sector.
General and administrative expenses increased 39.58 percent yearly due to higher employee costs and professional consultancy fees due to the company’s strategy projects.
Finance costs increased in the current quarter by 43.31 percent year on year, after an increase in the Saudi Arabian Interbank Offered Rate.
Nadec reported a net profit of SAR178.08 million in the first nine months of 2023, up 153 percent from SAR70.37 million a year ago as revenue grew 18.40 percent year on year thanks to higher sales in the dairy and food processing sector.
Total revenue hit SAR2.39 billion, rising 18.4 percent year on year.
In July, Nadec signed a deal to recycle the bio-waste produced by its 92,000 cows, estimated at 150,000 tonnes annually in the kingdom.
In June the dairy giant revealed plans to increase its capital by SAR2 billion ($533 million) through a rights issue to fund its 2023-27 expansion strategy. Nadec is targeting annual revenues of SAR6 billion by 2027.
The company sells more than 1.4 million litres of dairy products and fruit juice every day, and its products are sold in 35,000 stores across the GCC.