NADEC

05 May, 2024 08:45

The National Agricultural Development Company (NADEC) announces its Interim Financial results for the Period Ending on 2024-03-31 (Three Months)

Element ListCurrent QuarterSimilar quarter for previous year%ChangePrevious Quarter% Change
Sales/Revenue 857.58749.4114.434800.67.117
Gross Profit (Loss) 322.71278.1516.02286.1112.792
Operational Profit (Loss) 97.3257.2370.05112.39-13.408
Net profit (Loss) 101.3337.69168.851123.98-18.269
Total Comprehensive Income 102.8737.47174.539123.84-16.933
All figures are in (Millions) Saudi Arabia, Riyals


Element ListCurrent PeriodSimilar period for previous year%Change
Total Share Holders Equity (After Deducting the Minority Equity) 3,693.921,332.61177.194
Profit (Loss) per Share 0.340.24
All figures are in (Millions) Saudi Arabia, Riyals


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


Element ListExplanation
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 revenue for the current quarter increased by 14.43% compared to the similar quarter last year, this was mainly on account of increase in sales of dairy and food processing sector by 6.02% and sales from new protein segment by SAR 48.82 million represent 6.5% of total revenue in similar quarter last year.
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 to SAR 101.33 million compared to net profit of SAR 37.69 million for the similar quarter last year was due to: - Revenue: The Company’s revenue for the current quarter increased by 14.43% compared to the similar quarter last year, this was mainly on account of increase in sales of dairy and food processing sector by 6.02% and sales from new protein segment by SAR 48.82 million represent 6.5% of total revenue in similar quarter last year. - Cost of sales: Cost of sales percentage on revenue decreased during the current quarter by 0.51% compared to the similar quarter last year, was mainly on account of the increase in the sales and decrease in animal feed prices. - Impairment losses for trade receivables, and other receivables: Impairment losses of SAR 22 million recognized in similar quarter last year for subsidy receivable but no such impairment losses in current quarter. - Impairment of Assets: Impairment provision of SR 10.50 million made for the assets which are held for disposal during similar quarter last year but no impairment of assets in current quarter. - Finance income: Finance income of SAR 21.22 million earned on bank deposits made from unused rights issue proceeds in the current quarter and no such income available in similar quarter last year. -Finance cost: Finance cost decreased in the current quarter by 44.75% compared to the similar quarter last year was due to decrease in the average loan balance. - Share of results of joint venture: During the current quarter Company recognized its share of profit from joint venture amounting to SAR 8.94 million, but no such income recognized in similar quarter last year. Despite the changes in preceding elements that positively impacted the net profit of the Company in the current quarter, certain expenses were increased due to growth of the business as mentioned below: -Selling and marketing expenses: Selling and marketing expenses increased by 14.84% in the current quarter compared to the similar quarter last year was mainly on account of more spending on trade marketing and also an increase in distribution cost due to increase in sales and increase in fuel charges. - General and Administrative expenses: General and administrative expenses increased in the current quarter by SAR 18.70 million compared to the similar quarter last year was mainly on account of an increase in employee cost due to the Company’s new protein segment and IT expenses. -Zakat: Zakat expense increased in current quarter by SAR 14.35 million compared to the similar quarter in last year due to increase in the profit. All the above elements collectively impacted the gross profit and operating profit as follows: -Gross profit: Gross profit for the current quarter increased by 16.02% compared to the similar quarter last year, due to the increase in the revenue by 14.43% and decrease in percentage of cost of sales over the net revenue by 0.51%. -Operating profit: Operating profit of the current quarter increased by 70.06% compared to the similar quarter last year primarily due to increase in sales, decrease in cost of sales percentage over revenue, decrease in impairment losses and this increase partially offset by increase in selling & marketing expenses and general & admin expenses.
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is The Company’s revenue for the current quarter increased by 7.12% compared to the previous quarter, this was mainly on account of an increase in sales of dairy and food processing sector and sales from new protein segment by SAR 48.82 million.
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 in the current quarter reached to SAR 101.33 million compared to net profit of SAR 123.98 million for the previous quarter was due to: -Selling and marketing expenses: Selling and marketing expenses increased in the current quarter by 29.51% compared to the previous quarter was mainly on account of more spending on Trade marketing and increase in distribution cost due to increase in fuel prices. -Other income (expenses), net: During the previous quarter the company received SAR 19.46 million as one-time grant for animal feed and SAR 10 million as a compensation for cancelation of contract from joint venture company but no such income during the current quarter. -Zakat: During the previous quarter, Zakat assessments completed for the years 2014 to 2018. Based on the final assessment received SAR 26 million provision was reversed no such reversals during the current quarter. Despite the changes in preceding elements that negatively impacted the net profit of the Company in the current quarter, there are other elements that positively impacted the net profit of the current quarter as follows: - Revenue: The Company’s revenue for the current quarter increased by 7.12% compared to the previous quarter, this was mainly on account of an increase in sales of dairy and food processing sector and sales from new protein segment by SAR 48.82 million. - Cost of sales: Cost of sales percentage on revenue decreased during the current quarter by 1.89% compared to the previous quarter was mainly on account of the increase in revenue and decrease in animal feed prices. - General and Administrative expenses: General and administrative expenses decreased in the current quarter by 17.69% compared to the previous quarter was mainly on account of decrease in employee benefit expenses. - Finance income: Finance income for the current quarter increased by SAR 17.31 million compared to previous quarter mainly on account of increase in no. of days of bank deposits. -Finance cost: Finance cost decreased in the current quarter compared to the previous quarter by 57.73% due to the decrease average loan balance. - Impairment of Assets: Impairment provision of SR 13.53 million made for the assets which are held for disposal during previous quarter but no impairment of assets in current quarter. All the above elements collectively impacted the gross profit and operating profit as follows: -Gross profit: Gross profit of the current quarter increased by 12.79% compared to the previous quarter, due to the increase in the revenue by 7.12% and decrease in percentage of cost of sales over the net revenue by 1.89% due to reasons mentioned above. -Operating profit: Operating profit of the current quarter decreased compared to the previous quarter by SAR 15.07 million due to increase in selling and marketing expenses, absence one-off items like one-time grant for animal feed and compensation received for contract cancellation.
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 Please see the note 12 in the interim condensed financial statements for the three months period ended 31 March 2024.
Additional Information 1-The comprehensive income for the current quarter reached SAR 102.87 million compared to comprehensive income of SAR 37.47 million for the similar quarter last year with an increase of 174.57%. 2- The comprehensive income for the current quarter reached SAR 102.87 million compared to comprehensive income of SAR 123.84 million for the previous quarter with a decrease of 16.93%. 3-The net profit for the current quarter reached SAR 101.33 million compared to net profit of SAR 37.69 million for the similar quarter last year with an increase of 168.87%. 4-The net profit for the current quarter reached SAR 101.33 million compared to net profit of SAR 123.98 million for the previous quarter with a decrease of 18.27%. 5-Total revenue for the current quarter reached SAR 857.58 million compared to SAR 749.41 million for the similar quarter last year with an increase of 14.43%. 6-Total revenue for the current quarter reached SAR 857.58 million compared to SAR 800.60 million for the previous quarter with an increase of 7.12%. 7-The gross profit for the current quarter reached SAR 322.71 million compared to SAR 278.15 million for the similar quarter last year with an increase of 16.02%. 8-The gross profit of the current quarter reached SAR 322.71 million compared to SAR 286.11 million for the previous quarter with an increase of 12.79% 9-The operating profit for the current quarter reached SAR 97.32 million compared to SAR 57.23 million for the similar quarter last year with an increase of 70.06%. 10-The operating profit of the current quarter reached SAR 97.32 million compared to operating profit of SAR 112.39 million for the previous quarter with a decrease of 13.41%. 11-The shareholders’ equity as of 31 March 2024 (no minority equity) was SAR 3,693.92 million compared to SAR 3,592.84 million as of 31 December 2023 with an increase of 2.81%. 12-The shareholders’ equity as of 31 March 2024 (no minority equity) was SAR 3,693.92 million compared to SAR 1,332.61 million as of 31 March 2023 with an increase of 177.19% mainly on account of issue of new shares during Q4 2024 through rights issue. 13-The earnings per share for the current quarter is SAR 0.34 compared to earnings per share of SAR 0.24 for the similar quarter last year.

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