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Protein surge lifts Nadec’s revenue, but a cost squeeze guts the bottom line: National Agricultural Development Company (NADEC) saw net income fall 72.5% y-o-y to SAR 30.4 mn in 3Q 2026 even as revenue rose 7.8% y-o-y to SAR 909.7 mn, led by a doubling of protein sales and dairy and food processing edging up 1.2%, according to its earnings (pdf).
The gap is from supply chain disruptions cutting into costs: Despite increased revenues from its protein and dairy and food processing, gross margin shrank to 26.7% from 34.6% as feed and shipping costs and maritime-disruption surcharges hit the quarter to the tune of SAR 56 mn, and distribution expenses pushed selling and marketing costs up 12.9%. A SAR 10.9 mn drop in treasury income weighed further, partly cushioned by a SAR 9.2 mn reversal of a 2021-2023 Zakat provision.
Watch the comprehensive line: Nadec actually posted a total comprehensive loss of SAR 24.7 mn for the quarter, despite the reported net income, after a SAR 55.1 mn fair-value loss on its stake in Arabian Mills ran through other comprehensive income.
The nine-month read was largely the same. Net income fell 42.7% y-o-y to SAR 188.7 mn. Meanwhile, revenue was essentially flat, up 0.7% to SAR 2.7 bn, as 69.1% protein growth offset a 49.8% collapse in agriculture and a 1.7% dairy dip. The same cost pressure dominates: feed, shipping, and related costs cost SAR 107.1 mn over the period, alongside lower treasury income and a SAR 15 mn share of losses from the Al Raie National Livestock JV.
What’s next? The story into 4Q and 2027 is execution on the protein pivot. With the Haradh slaughterhouse now operational, NADEC still targets a year-end 2026 launch of its own-brand packaged red meat across major retail channels, backed by the Hilton Foods JV. As for the cost pressures, management expects relief once the regional environment normalizes, adding “we do not expect this environment to alter Nadec’s mid-to-long-term strategic plans,” CEO Solaiman bin Abdulaziz Al-Twaijri said.
