Nahdi Medical Co. (4164) saw its net profits drop to approximately SAR 248 million during the second quarter of 2024, compared to SAR 265 million in the same period in 2023.
What
Nahdi, the largest retail pharmacy chain in the Kingdom, said its profits from April to June represent 10% of its sales, marking a SAR 17.2 million fall.
So what
The company’s sales grew by 10.8%, compared to 7.2% during Q1 2024, resulting in revenue increases for the third consecutive quarter.
This growth is attributed to an 8.9% increase in the retail sector, alongside the successful outcomes of its strategic investments in the healthcare and retail sectors in the UAE, where revenues grew 100.1% and 186.8% respectively.
Overall, Nahdi’s retail operations’ performance is a result of “continuous growth” in the pharmaceutical sector and investment in expanding non-pharmaceutical products.
On the other hand, the company’s net profits fell by 5.6% during the first half of this year, reaching SAR 480.7 million.
Some context
Nahdi is experiencing a significant boost to online platforms, with e-commerce operations contributing 23.6% of total revenues in the second quarter, compared to 16.4% during the same period last year.
This growth was driven by increased non-pharmaceutical product sales.
This hike is attributable to the expansion of Al Nahdi’s product range across all categories, with more than 8,000 new items added to the Nahdi Online platform in the first half of the year.
By the second quarter, Nahdi’s customers in the UAE were able to access the full range of products available in Saudi Arabia.
Now what
The Board of Directors approved the distribution of SAR 325 million in cash dividends to shareholders for the first six months of 2024. The dividend per share stands at SAR 2.5, to be paid on August 25th.
