Nahdi sees modest hike in 2023 earnings to SAR 892.6M; Q4 profit up 33% to SAR 170.5M

Nahdi Medical Co.’s 2023 net profit surged to SAR 892.6 million, from SAR 887.8 million in the previous year.

The annual profit growth was spurred by gains generated from Islamic Murabaha time deposits, which resulted in a net profit of SAR 892.6 million in 2023.

The net profit margin remained almost flat in 2023 at 10.2% versus last year.

This was offset by the 0.7% year-on-year (YoY) drop in gross profit for 2023, mainly due to the company investing in promotions to support sales of non-pharmaceutical products.

On the other hand, the gross profit margin constituted 40.4% of Nahdi’s 2023 revenues, compared to 41.1% a year ago.

Moreover, operating income decreased by 4.2% YoY in 2023, primarily because of the YoY decrease in gross profit for the same year.

Operating expenses, however, held steady at 29.7% of revenues in 2023, despite the company investing in its strategic initiatives of healthcare services, UAE retail business, and e-commerce platforms. Nahdi has reinvested the savings resulting from operational efficiency improvement programs in bolstering and financing most of these initiatives.

In Q4 2023, Nahdi’s net income soared 33% to SAR 170.5 million, from SAR 127.99 million in the year-ago period.

On a quarterly basis, the company’s bottom line retreated 19.9% from SAR 212.81 million.

Total shareholders’ equity, after minority interest, grew to SAR 2.46 billion by the end of Dec. 31, 2023, from SAR 2.24 billion in the year before.

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