"Nadec" profits jumped to 131.6 million riyals in the second quarter

The National Agricultural Development Company (NADEC) achieved a jump in profits for the second quarter of 2020 to reach 131.6 million riyals, compared to 7 million riyals in the second quarter of 2019, with a growth of 1761 %.

According to Arabiya Net, profits increased by 623.6%, compared to profits realized in the previous quarter, which were 18.19 million riyals.

During the first six months of 2020, Nadec's profits reached 149 million riyals, compared to 3.39 million riyals, in the first half of 2019, with a growth of 4.319%.

and Nadec said that the increase in the company's net profit during the current quarter compared to the same quarter of last year amounted to 124.56 million SAR for several reasons, including that during the current quarter, it received The company sent a letter from the Ministry of Environment, Water and Agriculture to grant ownership of the revived land area in Hail, Wadi Al-Dawasir and Al-Jawf.

A net profit of 111.81 million riyals was recognized in the profit and loss statement in other income and expenses (net) when calculating the received land compared to the land already registered in the books.

the company's revenues for the current quarter increased by 0.64% compared to the same quarter last year due to increased demand for the company's products, which had a positive impact on increasing the company's sales volume The dairy and food sector sales grew by 1.99% while the agricultural sector sales decreased by 15.36% due to the decrease in vegetable sales due to COVID 19.

selling and marketing expenses in the current quarter compared to the same quarter of last year decreased by 0.99% due to the decrease in repair and maintenance expenses during the current quarter.

During the same quarter of last year, the company's recognized losses from contracts of financial instruments with an inverted floating commission recoverable by the issuing banks amounted to 24.71 million riyals. Cancel it after that. There is no such item during the current quarter.

The cost of financing decreased in the current quarter compared to the same quarter of last year by 39.63% due to lower interest rates and lower loans and bank facilities compared to the same quarter of last year.

Despite the changes in the previous elements that positively affected the net profit of the company in the current quarter, there were other elements that negatively affected the net profit for the current quarter of Among them:

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