‎Volatility raises costs, affects profit margins: NADEC CEO

‎<p ><img src="https://argaamplus.s3.amazonaws.com/4577d708-f237-4338-b88e-f64ada32f1cd.png" ></p> <p class="ckeCaption" >Solaiman AlTwaijri, CEO of National Agricultural Development Co. (NADEC)</p> <hr> <p >The volatile regional environment has led to higher feed, shipping, and distribution costs, putting pressure on profit margins, CEO of National Agricultural Development Co. (<a href="https://www.argaam.com/en/tadawul/tasi/nadec" target="_blank">NADEC</a>) <a href="http://www.argaam.com/en/tadawul/tasi/nadec/organizationemployhistory/solaiman-abdulaziz-altwaijri/1972" target="_blank">Solaiman Altwaijri</a> said in a statement.</p> <p ></p> <p >He expects some of these external cost burdens to persist until business conditions return to normal.</p> <p ></p> <p >Until then, the retailer will focus on operational discipline, improving capital allocation, strengthening supply chain resilience, and managing working capital.</p> <p ></p> <p >Based on its current assessment, such conditions are not expected to affect NADEC’s medium- and long-term strategic plans, he added.</p> <p ></p> <p >Altwaijri noted that the protein segment is experiencing strong growth, while the core dairy and food processing business provides significant operational scale, a trusted brand, and a broad consumer base.</p> <p ></p> <p >The company’s priorities are to translate these strengths, alongside its disciplined investments, into sustainable and profitable growth in the coming period.</p> <p ></p> <p >The CEO noted that the company’s operational priorities are clear: preparing to launch packaged red meat products ready for retail sale, capitalizing on the potential of the Haradh slaughterhouse and its joint venture with Hilton Foods, and developing a higher-value, technology-driven agricultural business.</p> <p ></p> <p >According to <span ><strong>Argaam </strong></span>data, NADEC’s <a href="http://www.argaam.com/en/financial-reports/company-report/34/2026/72" target="_blank">profit</a> fell to SAR 188.66 million in the first nine months of 2026, from SAR 329.35 million in the same period of 2025. The company recorded a profit of SAR 30.4 million in Q3 2026, down 73% year-on-year (YoY).</p>

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Argaam - Main News · Trade Publication

Published

18th October 2026

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argaam.com

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