Al-Jouf Agricultural Development Co. announces its Interim Financial results for the Period Ending on 2026-06-30 ( Six Months )

Al-Jouf Agricultural Development Co. reported a 78.27% decline in net profit for the first half of 2026, falling to SAR 11.53 million from SAR 53.08 million in the same period last year. The second quarter net profit also decreased by 48.55% year-on-year to SAR 9.48 million, though it marked a significant 361.27% recovery compared to the immediate previous quarter (Q1 2026).
Six-month revenue remained relatively stable at SAR 323.26 million, a slight decrease of 0.59% year-on-year, as volume growth in the agricultural and olive oil segments was offset by a SAR 24.2 million negative impact from lower selling prices due to competition from imported products.
Financial performance was primarily hindered by a SAR 46.2 million increase in production costs during the first half of the year, a direct result of unusual climatic conditions during the 2025 agricultural season that adversely affected crop output.
Management expects the impact of previous climatic challenges to diminish as new, lower-cost crops from the 2026 season enter production, a trend already reflected in the sharp quarter-on-quarter profit growth and improved margins seen in Q2.

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	155,585	154,595	0.64	167,675	-7.21
Gross Profit (Loss)	40,886	47,926	-14.689	27,345	49.519
Operational Profit (Loss)	12,192	24,750	-50.739	4,118	196.066
Net Profit (Loss) Attributable to Shareholders of the Issuer	9,479	18,423	-48.548	2,055	361.265
Total Comprehensive Income Attributable to Shareholders of the Issuer	9,479	18,423	-48.548	2,055	361.265
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	323,260	325,189	-0.593
Gross Profit (Loss)	68,231	116,287	-41.325
Operational Profit (Loss)	16,310	66,365	-75.423
Net Profit (Loss) Attributable to Shareholders of the Issuer	11,533	53,080	-78.272
Total Comprehensive Income Attributable to Shareholders of the Issuer	11,533	53,080	-78.272
Total Shareholders Equity (after Deducting Minority Equity)	800,012	793,022	0.881
Profit (Loss) per Share	0.38	1.77
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Amount	Percentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value	-	-
All figures are in (Thousands) 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 increase in sales for the current quarter of 2026 compared with the same quarter of 2025 is due to the increase in the quantities sold by the agricultural segment, despite the decline in the selling prices of some products as a result of the pricing pressure from imported products.
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 decline in net profit for the second quarter of 2026 compared to the corresponding quarter of the previous year is attributable to the Company reporting a net profit of SAR 9.5 million for Q2 2026, compared to a net profit of SAR 18.4 million in the corresponding quarter of the previous year, representing a decrease of SAR 8.9 million. This decline was mainly driven by the following factors: 1. Cost of sales for industrial products increased by SAR 13.8 million due to the unusual climatic conditions experienced during the 2025 agricultural season, as previously disclosed in the first-quarter results. These conditions adversely affected agricultural output and led to higher production costs. 2. The selling prices of industrial products declined, resulting in a negative impact of SAR 9.0 million due to pricing pressures from imported products. In addition, sales of French fries products decreased by SAR 4.7 million. 3. Operating expenses increased by SAR 1.5 million, while Zakat expense increased by SAR 1.3 million compared to the corresponding quarter of the previous year. Despite these challenges, the Company achieved growth in sales of olive oil products and agricultural products compared to the corresponding quarter of the previous year, contributing positively by approximately SAR 14.8 million. The Company confirms that the impact of the aforementioned climatic conditions is expected to diminish over the coming quarters as new crops from the 2026 season enter production. The Company will continue to focus on improving operational efficiency, strengthening cost management practices, and enhancing the efficiency of its supply chain and production operations, which is expected to support improved operational and financial performance in the coming periods and drive a strong return to growth, God willing.
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is	The decline in sales during the current quarter of 2026 compared to the previous quarter was primarily attributable to a reduction in the selling prices of certain products due to pricing pressures resulting from imported products, particularly frozen French fries. This was despite an increase in sales volumes from the agricultural segment during the current quarter.
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is	The increase in net profit during the current quarter of 2026, compared to the previous quarter, was primarily driven by an improvement in profit margins for certain products during the current quarter following the commencement of using new, lower-cost crops. This was achieved despite a decline in the average selling prices of some products due to pricing pressures from imported products, particularly frozen French fries, as well as higher selling and distribution expenses and increased Zakat expenses.
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 decline in sales during the current period of 2026 compared to the corresponding period of 2025 was primarily attributable to lower selling prices for certain products as a result of pricing pressures from imported products, particularly frozen French fries. This was despite an increase in sales volumes from the agricultural segment during the current 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 decline in net profit during the current period of 2026 compared to the corresponding period of 2025 is attributable to the Company reporting a net profit of SAR 11.5 million for the first half of 2026, compared to a net profit of SAR 53.1 million for the corresponding period of the previous year, representing a decrease of SAR 41.6 million. This was mainly due to the following factors: 1. Cost of sales for industrial products increased by SAR 46.2 million as a result of the unusual climatic conditions experienced during the 2025 agricultural season, which led to higher production costs. 2. The selling prices of industrial products declined, resulting in a negative impact of SAR 24.2 million due to pricing pressures from imported products. In addition, sales of Al-Jouf Olive Oil decreased by SAR 5.6 million. 3. Zakat expense increased by SAR 1.3 million compared to the corresponding period of the previous year. Despite these challenges, the Company achieved growth in sales of French fries products and other products compared to the corresponding period of the previous year, contributing positively by approximately SAR 27.8 million. In addition, the Company implemented initiatives to enhance operational efficiency and reduce costs, which contributed to a reduction in operating expenses of approximately SAR 2 million compared to the corresponding period of the previous year. The Company remains committed to improving operational efficiency, strengthening cost management practices, and enhancing the efficiency of its supply chain and production operations, which are expected to support improved operational and financial performance in the coming periods and drive a strong return to growth, God willing.
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	Certain comparative figures for the prior period have been reclassified to conform to the presentation of the current period.
Additional Information	-