Riyadh – Mubasher: National Agricultural Development Co. (Nadec) posted a net profit of SAR 30.13 million ($8.04 million) in the third quarter this year, down 34% from SAR 45.69 million ($12.18 million) in the same period in 2015.
On a quarter-on-quarter basis, profits declined by 19%, according to a statement to Tadawul on Thursday.
The year-on-year decline in Q3-16 net profits was due to a rise in the cost of funding and banking facilities owing to the higher interest rates.
Moreover, other expenses and revenues negatively affected net profits, while zakat dues had a positive impact during the period.
Dairy and food processing sector sales rose by 1%, while the agricultural sector grew by 4.6%, resulting in an increase of gross company sales by 1%, according to the statement.
As for the first nine months of 2016, Nadec recorded a decline in net profit by 13.58% to SAR 92.43 million, compared to SAR 106.95 million during the same period last year.
Nadec previously posted SAR 37.06 million in net profit during Q2-16, up 5.58% from SAR 35.1 million in the year-ago period.
