The National Agricultural Development Company (NADEC) incurred losses of 17.35 million riyals in the second quarter of 2021, compared to profits of 131.63 million riyals during the same period last year.< /p>
According to Arabiya Net, the company's sales fell by 11.6% to reach 537.23 million riyals, compared to 608.06 million riyals during the same period last year.
In a statement to the Saudi Tadawul, the company attributed the losses to the decline in sales of dairy and food processing products by 8.18%, and the decline in sales of the agricultural sector by 61.32%.
Selling and marketing expenses decreased in the second quarter compared to the same quarter last year by 12.19% mainly due to a decrease in spending on marketing and promotion activities.
G&A expenses in the second quarter decreased by 6.37% compared to the same quarter last year, mainly due to lower staff costs, partially offset by an increase in IT expenses. .
The cost of financing decreased in the second quarter compared to the same quarter of last year by 24.07% as a result of lower interest rates and lower loans and bank facilities compared to the same quarter of last year.
The impairment losses in the value of trade receivables decreased by 3.57 million riyals during the second quarter compared to the same quarter of last year.
The company achieved a grant profit during the second quarter of last year, as it received a letter from the Ministry of Environment, Water and Agriculture granting ownership of the revived plot of land in Hail, Wadi Al-Dawasir and Al-Jawf. A net profit of SAR 111.81 million was recognized in the statement of profit and loss under other income and expenses (net) when calculating the land received compared to the land already recorded in the books, but there are no such items in the current quarter.
During the first half, the company's losses amounted to 10.98 million riyals, compared to 149.81 million riyals, profits during the corresponding period last year, after a decline in revenues by 8% to 1.073 billion Real.
