Nadec reported a net profit of US$28.6m for 2014, up from US$26.7m the year before. The company said its total sales were up 7.5%, mostly driven by its dairy and food processing divisions, which saw 12.5% growth, while its income from agricultural operations fell.
Focus on innovations
“We see a continuation of the top and bottom line growth in 2015, as in addition to our winning approach on mainstream products such as milk, laban, yogurt, we are leveraging strong newly introduced innovations such as cavita milk juice, ayran, jar cream cheese, etc, which have unique selling propositions compared to key competitors,” said Nadec Foods CEO Patrick Satamian.
The company aims to use its new R&D centre, based in Haradh, in the Eastern Province, to drive growth in its consumer product divisions with new products and improvements to existing formulas. The centre, which saw its formal launch this month, after a soft opening in January, covers 1,000 square metres and currently employs nine staff, with more being recruited at the moment.
“The new Haradh-based R&D centre is a significant investment for our business and will help fast-forward Nadec’s innovation process across the entire product range. This investment will further enhance Nadec’s scientific and technological expertise in dairy foods and beverages and help continue to develop innovative, healthy, nutritious and great tasting products for our consumers and ensure the highest quality standards for all products,” said Nadec managing director Abdul Aziz Mohammad Al Babtain.
The Haradh centre includes wet and dry processing and packaging facilities for pilot projects, product and packaging development areas, and a sensory testing laboratory. It also features finished product storage areas at varying temperatures, from -18C to 55C, to conduct accelerated shelf-life tests.
According to Nadec, the R&D centre’s first priority is to complete its recruitment drive and get up to full staffing levels. In addition to its longer-term product development and improvement briefs, the centre has also been tasked with improving Nadec’s packaging, to improve efficiency, sustainability and customer satisfaction.
“Nadec is committed to developing competitively superior food products that delight our millions of customers around the region. This new centre focuses on the development and utilisation of internal talent and resources to build a strong technical team that is relentless in its pursuit of creating innovative products based on the latest nutrition research, market research, and an in depth knowledge of consumer trends,” said Satamian.