Nahdi’s H1 2024 profit down 6% to SAR 480.7M; Q2 at SAR 247.7M

Nahdi Medical Co. reported a net profit decline of 6% to SAR 480.7 million in H1 2024, from SAR 509.3 million in the year-earlier period.

Operating profit reached SAR 505.1 million in H1 2024, compared to SAR 546.2 million a year earlier This came after the company continued to invest in various strategic initiatives including new openings, healthcare acceleration, UAE expansion and digitalization. Savings generated from ongoing efficiency programs allowed the company to accelerate these strategic investments.

This has led to a notable enhancement in operating expenses as a percentage of revenue, which improved by 1.3% to 27.7% compared to 29.0% in the same period last year.

However, gross profit reached SAR 1.79 billion in the six-month period, compared to SAR 1.78 billion in H1 2023, driven by the continuous investment to support sales growth. Thus, the company maintained a gross margin of 38.0%.

Nahdi continued to maintain its sales performance momentum, achieving 9.1% growth in the first half of 2024. Total revenue rose by SAR 393.6 million to SAR 4.73 billion compared to SAR 4.33 billion in H1 2023, driven by a strong performance in the retail sector supported by the ongoing pharma growth momentum and the company’s investment into front shop categories. Moreover, the healthcare and UAE businesses recorded growth of 109.7% and 180.1%, respectively.

The second-quarter net profit declined 7% to SAR 247.7 million, from SAR 264.9 million in Q2 2023.

On the other hand, the Q2 bottom line grew 6.3% from SAR 232.9 million in Q1 2024, as sales increased by 9.5% quarter-on-quarter.

Shareholders’ equity, no minority interest, reached SAR 2.57 billion by June 30, 2024, compared to SAR 2.37 billion in the prior-year period.

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