Nahdi 9M 2023 profit down 5% to SAR 722 mln; Q3 at SAR 212.8 mln

Nahdi Medical Co. reported a net profit of SAR 722 million for the first nine months of 2023, a decline of 5% from SAR 759.8 million in the year-earlier period.

This was driven by 1.2% lower gross profit year-on-year (YoY), mainly due to investments in sales promotions. Gross margin landed at 40.9% of revenue in the current period compared to 41.5% in the same period of last year. Revenue also stabilized at SAR 6.49 billion. 

Operating profit decreased by 8.6% due to lower gross profit and a 2.4% increase YoY in operating expenses. The decline in operating profit was partially offset by the income generated from Murabaha time deposits. 

Q3 2023 net earnings dropped 16% YoY to SAR 212.8 million, as revenue remained almost flat at SAR 2.16 billion with a slight increase of SAR 4 million YoY. The growth in the medicine, healthcare, and the UAE businesses was partially offset by a decline in non-pharma segments. Additionally, gross profit decreased by 4% YoY as a result of investments in sales promotions. Also, operating profit declined by 17.5% driven by lower gross profit and a slight increase in operating expenses.

On a quarterly basis, net profit fell 19.7% from SAR 264.95 million.

Total shareholders’ equity, no minority interest, stood at 2.27 billion by Sept. 30, 2023, compared to SAR 2.09 billion in a prior-year period.

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