The National Agricultural Development Company (NADEC) announces its interim condensed consolidated financial results for the period ended 30 June 2026 (Six Months)

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	876.44	830.47	5.535	917.86	-4.512
Gross Profit (Loss)	249.52	313.16	-20.321	282.37	-11.633
Operational Profit (Loss)	78.64	109.49	-28.176	97.62	-19.442
Net Profit (Loss) Attributable to Shareholders of the Issuer	64.56	115.26	-43.987	93.71	-31.106
Total Comprehensive Income Attributable to Shareholders of the Issuer	106.48	77.62	37.181	101.57	4.834
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	1,794.3	1,841.92	-2.585
Gross Profit (Loss)	531.89	638.91	-16.75
Operational Profit (Loss)	176.26	208.77	-15.572
Net Profit (Loss) Attributable to Shareholders of the Issuer	158.27	218.68	-27.624
Total Comprehensive Income Attributable to Shareholders of the Issuer	208.05	180.8	15.071
Total Shareholders Equity (after Deducting Minority Equity)	4,816.21	4,456.52	8.071
Profit (Loss) per Share	0.53	0.72
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Amount	Percentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value	-	-
Accumulated Losses	-	-
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is	The Company’s total revenue for the current quarter reached SAR 876.44 million compared to SAR 830.47 million for the same quarter last year, with an increase of 5.54%. The increase was mainly driven by growth in the Protein and Agri sectors, which increased by 99.19% and 40.99%, respectively, as the Company continued to invest in strategic food segments with long-term commercial relevance. The growth in the Protein and Agri business helped offset a decrease in the Dairy and Food Processing sector by 3.67%.
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	The Company’s net profit in the current quarter reached SAR 64.56 million, compared to SAR 115.26 million for the same quarter of the previous year, with a decrease of 43.99%. The decrease was mainly due to the following factors: - Cost of sales: Cost of sales as a percentage of revenue increased by 9.24% compared to the same quarter of the previous year, mainly due to an exceptional increase in feed and shipping costs and surcharges related to regional maritime disruptions. The total financial impact of these cost increases was SAR 45 million during the current quarter. Management expects these exceptional cost pressures to moderate once the regional operating environment normalizes. -Selling and marketing expenses: Selling and marketing expenses increased by 5.42% compared to the same quarter of the previous year, mainly due to higher distribution costs. -Other expenses: Other expenses increased by SAR 7.84 million compared to the same quarter of the previous year, mainly due to higher culling of biological assets. - Treasury income: Treasury income decreased by SAR 9.19 million compared to the same quarter of the previous year, mainly due to lower income on deposits. - Share of results from Joint Venture: During the current quarter, the Company recognized SAR 9.12 million as its share of losses from its joint venture investment in Al Raie National Livestock Company for its 2025 and H1 2026 financial results, compared to SAR 0.50 million for the same quarter of the previous year. Additionally, on 3 May 2026, NADEC announced that it had entered into a share purchase agreement with Anaam Saudi for Trading Company to acquire its 49% stake in Al Raie National Livestock Company. The transaction is subject to the fulfillment of the required conditions and regulatory and contractual approvals, upon which NADEC’s ownership in Al Raie National Livestock Company will increase to 100%. The above factors were partially offset by the following positive items: - Revenue: The Company’s total revenue for the current quarter reached SAR 876.44 million compared to SAR 830.47 million for the same quarter last year, with an increase of 5.54%, mainly driven by growth in the Protein and Agri sectors, which increased by 99.19% and 40.99%, respectively. The growth in these strategic value-added segments partially offset a decrease in the Dairy and Food Processing sector. - Reversal of impairment losses for trade receivables, and other receivables: During the current quarter, the Company recorded a non-recurring gain of SAR 32.84 million from the reversal of impairment losses related to old receivable balances collected during the current quarter. -Other income: Other income increased by SAR 9.16 million compared to the same quarter of the previous year, mainly due to higher dividend income and scrap sales. As a result of the above factors, gross profit and operating profit were impacted as follows: -Gross profit: The gross profit for the current quarter reached SAR 249.52 million compared to SAR 313.16 million for the same quarter last year, with a decrease of 20.32%, mainly due to external cost pressures that increased the cost of sales as a percentage of revenue by 9.24%. These pressures were primarily driven by an exceptional increase in animal feed costs, shipping costs, and war surcharges related to regional maritime disruptions. -Operating profit: The operating profit for the current quarter reached SAR 78.64 million compared to the operating profit of SAR 109.49 million for the same quarter last year, with a decrease of 28.18%, mainly due to the increase in cost of sales as a percentage of revenue and higher selling and marketing expenses, partially offset by higher revenue.
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is	The Company’s total revenue for the current quarter reached SAR 876.44 million compared to SAR 917.86 million for the previous quarter (Q1 2026), with a decrease of 4.51%. The decrease was mainly due to lower sales in the Dairy and Food Processing sector and the Protein sector, partially offset by higher sales in the Agri sector. Given that the Holy Month of Ramadan and Eid Al-Fitr fell during Q1 2026, a period in which NADEC has historically recorded higher sales, the quarter-on-quarter decrease in Q2 is in line with normal seasonal patterns.
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is	The Company’s net profit for the current quarter reached SAR 64.56 million, compared to SAR 93.71 million for the previous quarter, with a decrease of 31.11%. The decrease was mainly due to the following factors: - Revenue: The Company’s total revenue for the current quarter reached SAR 876.44 million compared to SAR 917.86 million for the previous quarter (Q1 2026), with a decrease of 4.51%, mainly due to lower sales in the Dairy and Food Processing sector and the Protein sector, partially offset by higher sales in the Agri sector. - Cost of sales: Cost of sales as a percentage of revenue increased by 2.29% compared to the previous quarter, mainly due to an exceptional increase in feed costs, shipping costs, and surcharges related to regional maritime disruptions. Management expects these exceptional cost pressures to moderate once the regional operating environment normalizes. On the other hand, the following elements had a positive impact on the net profit of the current quarter compared to the previous quarter: - Other income: Other income increased by SAR 11.51 million compared to the previous quarter, mainly due to higher dividend income and scrap sales. As a result of the above factors, gross profit and operating profit were impacted as follows: - Gross profit: The gross profit of the current quarter reached SAR 249.52 million compared to SAR 282.37 million for the previous quarter, representing a decrease of 11.63%, mainly due to lower revenue and the increase in cost of sales as a percentage of revenue, driven by an exceptional increase in feed and feeding material costs, shipping costs, and surcharges related to regional maritime disruptions. - Operating profit: The operating profit of the current quarter reached SAR 78.64 million compared to the operating profit of SAR 97.62 million for the previous quarter, representing a decrease of 19.44%, mainly due to lower revenue and the increase in cost of sales as a percentage of revenue, partially offset by higher other income.
The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is	The Company’s total revenue for the current period reached SAR 1,794.30 million compared to SAR 1,841.92 million for the same period last year, with a decrease of 2.59%. The decrease was mainly due to lower sales in the Dairy and Food Processing sector and the Agri sector, which decreased by 3.07% and 60.93%, respectively. This was partially offset by higher sales in the Protein sector, which helped moderate the decline in revenue and supported the Company’s portfolio diversification during the period.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is	The Company’s net profit for the current period reached SAR 158.27 million, compared to SAR 218.68 million for the same period of the previous year, with a decrease of 27.62%. The decrease was mainly due to the following factors: - Revenue: The Company’s total revenue for the current period reached SAR 1,794.30 million compared to SAR 1,841.92 million for the same period last year, with a decrease of 2.59%, mainly due to lower sales in the Dairy and Food Processing sector and the Agri sector, which decreased by 3.07% and 60.93%, respectively. This was partially offset by higher sales in the Protein sector, in line with the Company’s portfolio diversification strategy. - Cost of sales: Cost of sales as a percentage of revenue increased by 5.04% compared to the same period of the previous year, mainly due to an exceptional increase in feed and feeding material costs, shipping costs, and surcharges related to regional maritime disruptions. Management expects these exceptional cost pressures to moderate once the regional operating environment normalizes. - Selling and marketing expenses: Selling and marketing expenses increased by 3.82% compared to the same period of the previous year, mainly due to higher distribution costs. - Treasury income: Treasury income decreased by SAR 13.13 million compared to the same period of the previous year, mainly due to lower income on deposits. - Share of results from Joint Venture: During the current period, the Company recognized SAR 15.02 million as its share of losses from its joint venture investment in Al Raie National Livestock Company for its 2025 and H1 2026 financial results, compared to SAR 0.50 million for the same period of the previous year. The above factors were partially offset by the following positive items: - Impairment losses for trade and other receivables: During the current period, the Company recorded a non-recurring gain of SAR 73.03 million from the reversal of impairment losses related to old receivable balances collected during the current period. As a result of the above factors, gross profit and operating profit were impacted as follows: - Gross profit: The gross profit for the current period reached SAR 531.89 million compared to SAR 638.91 million for the same period last year, with a decrease of 16.75%, mainly due to the 2.59% decrease in revenue and the 5.04% increase in cost of sales as a percentage of revenue, driven by an exceptional increase in feed and feeding material costs, shipping costs, and surcharges related to regional maritime disruptions. - Operating profit: The operating profit for the current period reached SAR 176.26 million compared to the operating profit of SAR 208.77 million for the same period last year, with a decrease of 15.57%, mainly due to lower revenue, the increase in cost of sales as a percentage of revenue, and higher selling and marketing expenses.
Statement of the type of external auditor's report	Unmodified conclusion
Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion)	None
Reclassification of Comparison Items	None
Additional Information	During the period, NADEC continued to advance its broader food platform strategy, with a focus on strengthening the future fundamentals Dairy and Food Processing sector, scaling Protein, and developing Agriculture as a higher-value, technology-enabled production vertical. Furthermore, NADEC expects the temporary cost pressures experienced during the reporting period to moderate as the regional operating environment normalizes. The Company remains focused on managing these external cost pressures while executing its long-term growth strategy. Near-term priorities include strengthening the future fundamentals of Dairy and Food Processing sector through innovation, product availability, new SKUs and disciplined route-to-market execution, advancing Protein toward retail availability, integrating Al Raie within the red meat platform, and progressing on the Agriculture business as an advanced strategic vertical.”
Attached Documents	Attached Documents