The National Agricultural Development Company (Nadec) turned to profitability, earning 18.2 million riyals in the first quarter of 2020, compared to losses of 3.7 million riyals in the first quarter of 2019.

According to Arabia Net, the company said that the reason for achieving profits during the current quarter compared to the corresponding quarter of the previous year is due to:

Revenue:

derivative financial instruments loss:

During the corresponding quarter of last year, the company recorded losses amounting to 20.77 million Saudi riyals on contracts for financial instruments derived from floating floating commission that are recoverable by the issuing banks which It was canceled later. There is no such item during the current quarter.

Finance cost:

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Impairment losses on trade receivables:

The decrease in the trade receivables value decreased by 10.84% ​​during the current quarter compared to the same quarter of last year due to the decrease in the balance of trade receivables compared to the same quarter of the previous year .

Despite the changes in the previous elements that positively affected the company's net profit in the current quarter, there are other elements that negatively affected the net profit for the current quarter as follows :

- Cost of sales:

The ratio of cost of sales to revenue during the current quarter increased by 2.11% compared to the same quarter of the previous year, mainly due to the increase in the cost of direct materials due to the cessation of support The government on animal feed.

- Selling and marketing expenses:

Selling and marketing expenses in the current quarter compared to the same quarter of last year increased by 2.95%, mainly due to the increase in the cost of distribution due to the increase in sales volume. p>

Zakat expenses:

The estimated Zakat expenses for the current quarter increased by 20.83% compared to the same quarter of the previous year.

The previous components combined had the following effect on the gross profit and operating profit:

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