NADEC restructuring to save $32m over two years

NADEC restructuring to save $32m over two years
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Updated 10 January 2021

NADEC restructuring to save $32m over two years

NADEC restructuring to save $32m over two years
  • NADEC will work with Bain & Company consultants throughout the program

RIYADH: The National Agricultural Development Company (NADEC) has launched a restructuring program to save SR120 million ($32 million).

In a statement to the Saudi stock exchange on Sunday, the company said the program will assess organizational setup, resource planning infrastructure, and financial performance.

NADEC will work with Bain & Company consultants throughout the program, which is expected to last two years. 

NADEC expects the program to improve the company’s net profit in the range of SR40 million in the second quarter of 2021, with an overall impact of approximately SR120 million.

As the first and biggest agricultural share-stock company in Saudi Arabia, NADEC’s recent results revealed a loss for the third quarter ended Sept. 30, 2020. The company reported a net loss of SR44.9 million compared to a profit of 49.3 million riyals in the same quarter in 2019.

There were various causes for this loss, such as the 6.6 percent rise in sales costs, an 8.43 percent increase in selling and marketing expenses, and a 13.5 percent growth in general and administrative expenses.

In April 2020, NADEC’s board of directors appointed Steen Hadsbjerg as the new CEO after they approved the resignation of former CEO Abdulaziz Al-Babtain in March 2020.

Established by Royal Decree in the early 1980s, NADEC is the first agricultural company in Saudi Arabia to support agriculture, nutrition, and food security. The company is 20 percent owned by the government, with the rest publicly traded on the Saudi Stock Exchange. It is one of the largest integrated dairy companies in the world.


China was largest recipient of FDI in 2020 — UNCTAD report

In this Jan. 25, 2020, file photo, an ambulance drives across a nearly empty bridge in Wuhan, China, after the city was placed under a 76-day lockdown amid a rising COVID-19 outbreak. China managed to place the contagion under control early while other countries continue to suffer from the pandemic one year after. (Chinatopix via AP, File)
In this Jan. 25, 2020, file photo, an ambulance drives across a nearly empty bridge in Wuhan, China, after the city was placed under a 76-day lockdown amid a rising COVID-19 outbreak. China managed to place the contagion under control early while other countries continue to suffer from the pandemic one year after. (Chinatopix via AP, File)
Updated 25 January 2021

China was largest recipient of FDI in 2020 — UNCTAD report

In this Jan. 25, 2020, file photo, an ambulance drives across a nearly empty bridge in Wuhan, China, after the city was placed under a 76-day lockdown amid a rising COVID-19 outbreak. China managed to place the contagion under control early while other countries continue to suffer from the pandemic one year after. (Chinatopix via AP, File)
  • China’s $163 billion in inflows last year, compared to $134 billion attracted by the US
  • In 2019, the US had received $251 billion in inflows and China received $140 billion

China was the largest recipient of foreign direct investment in 2020 as the coronavirus outbreak spread across the world during the course of the year, with the Chinese economy having brought in $163 billion in inflows.
China’s $163 billion in inflows last year, compared to $134 billion attracted by the United States, the United Nations Conference on Trade and Development (UNCTAD) said in a report released on Sunday.
In 2019, the United States had received $251 billion in inflows and China received $140 billion.
China’s economy picked up speed in the fourth quarter, with growth beating expectations as it ended a rough coronavirus-striken 2020 in remarkably good shape and remained poised to expand further this year even as the global pandemic rages unabated.
China’s gross domestic product grew 2.3% in 2020, official data showed last week, making China the only major economy in the world to avoid a contraction last year.
The world’s second-largest economy has surprised many with the speed of its recovery from the coronavirus jolt, especially as policymakers have also had to navigate tense US-China relations on trade and other fronts.
Overall, global FDI had collapsed in 2020, falling by 42% to an estimated $859 billion, from $1.5 trillion in 2019, according to the UNCTAD report.
“FDI finished 2020 more than 30% below the trough after the global financial crisis in 2009,” the UNCTAD said on Sunday.
FDI flows fell by 37% in Latin American and the Caribbean, by 18% in Africa, and by 4% in developing Asia, the report added.
East Asia accounted for a third of global FDI in 2020, while FDI flows to developed countries fell by 69%.