Riyadh, Saudi Arabia — The National Agricultural Development Company (Nadec) posted a 3.02% year-on-year rise in net profit for Q2 2025, reaching SAR 115.26 million, up from SAR 111.88 million a year earlier. Every quarter, profit rose 11.4% from SAR 103.42 million in Q1 2025.

Nadec Q2 Profit Rises 3% to SAR 115M on Strong Protein, Agri Sales

Revenue for the quarter climbed 5.11% to SAR 830.47 million. This growth was driven by a 2% increase in dairy and beverages sales, a 35.12% surge in protein product revenue, and a 44.12% rise in agricultural sector sales.

Additionally, Nadec reported a 22.80% increase in treasury income, which was supported by higher Murabaha deposits with banks. The company also received SAR 3.15 million in dividends from its investment in Arabian Mills, a line item absent in Q2 2024.

The cost of sales as a percentage of revenue increased slightly by 0.08% due to changes in product mix. Moreover, selling and marketing expenses increased by 6.5% due to higher distribution costs. Financing costs increased by 42.34%, primarily due to lease obligations. Notably, Nadec recorded no joint venture earnings this quarter, compared to SAR 8.39 million in Q2 2024.

H1 2025 Sees 11.8% Revenue Growth.

For the first half of 2025, revenue rose 11.79% year on year to SAR 1.84 billion. Net profit reached SAR 218.68 million, up 2.56% from SAR 213.21 million in H1 2024.

What This Means for Investors

  • Diversified growth drivers: Gains in protein and agricultural segments supported revenue expansion.
  • Stable profit margins: Profitability held despite higher marketing and financing expenses.
  • Treasury gains: Increased Murabaha deposits contributed to higher non-operating income.
  • JV impact: Absence of joint venture earnings slightly capped net income growth.

 

 

THE SAUDI STANDARD’S VIEW: Nadec Profit Growth Reflects Strategic Diversification in Food Security Chain

Nadec’s 3% year-on-year rise in Q2 2025 profit to SAR 115.26 million, driven by strong growth in protein and agricultural sector sales, reflects the company’s strategic alignment with Saudi Arabia’s broader food security and self-sufficiency objectives under Vision 2030. With revenue up 5.1% to SAR 830.47 million, the quarter validates Nadec’s pivot toward high-growth verticals in the national agri-food ecosystem.

Protein sales surged 35.1% and agricultural sales climbed 44.1%, signaling rising demand for localized, vertically integrated food production. As a result, Nadec is evolving from a traditional dairy leader into a multi-segment food and agribusiness innovator.

Meanwhile, treasury income rose 22.8% due to higher Murabaha placements. This reflects prudent liquidity use and a disciplined approach to financial optimization amid fluctuating cost pressures.

Although joint venture income was absent and financing costs rose 42.3%, core operational growth and dividend inflows from Arabian Mills helped offset these challenges. This points to a well-diversified revenue base.

Nadec’s H1 2025 results—11.8% revenue growth to SAR 1.84 billion and a 2.6% profit increase to SAR 218.7 million—demonstrate long-term momentum and strategic agility across its value chain. Therefore, Nadec Q2 2025 profit offers further confidence in the company’s direction.

As Saudi Arabia intensifies efforts to localize food production and reduce external supply risks, Nadec’s performance in protein and agriculture positions it as a vital player in the Kingdom’s food independence and sustainability agenda. The company’s results reinforce confidence in the economic viability of national food producers amid global agri-volatility.

 

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