Al -Nahdi’s profits increase to 255.2 million riyals in the first quarter

The profits of Al -Nahdi Medical Company in the first quarter of 2025 increased by 9.6% to 255.2 million riyals, compared to 232.9 million riyals in the same quarter of last year.
According to the company’s statement on Saudi Arabia’s circulation, the company recorded a growth in net profits as a result of the following reasons:
Total profit: The total profit increased by 10.5 % or 90.1 million riyals to 950.9 million riyals compared to 860.8 million riyals in the same quarter of the previous year, driven by strong performance in sales of the main sectors of retail work.
While the total margin reached 36.1 % compared to 38.1 % for the same quarter of the previous year. The pressure on the margins of total profits is mainly due to the rapid growth in the health care and e -commerce services sectors, as these two sectors work with less total margins, despite their benefit from the low operational expenses.
Operating profits: Operating profits have grown by 16.6 %, in line with sales growth, supported by an increase in total profits.
This rise in a partial increase in operational expenses was met with an amount of 50.1 million riyals, as a result of the company’s continued investment in its strategic initiatives, which includes new openings for the retail sector, sectors of health care services and the field of retail sales in the United Arab Emirates, and digital transformation.
Despite the increase in operational expenses, operational profits witnessed an improvement as a percentage of sales by 2.1 %, to 26.1 %, compared to 28.2 % in the same quarter of the previous year.
This enabled the company to accelerate the pace of its investments by re -investing the resulting savings from operational efficiency enhancement programs, while maintaining disciplined levels of profit margins.
Thus, operating profits amounted to 270.0 million riyals, compared to 231.6 million riyals in the same quarter of the previous year.
Moreover, a net increase in 28.0 million riyals in non -operational expenses was recorded, which is mainly due to the high banking expenses and benefits related to the obligations of rental contracts in order to support the growth in sales and business expansion.
It should be noted that the zakat allowance included an unenviable unit of 17.8 million riyals, which resulted from the closure of the zakat link for most of the previous years. This led to a decrease in the amount of 11.9 million riyals in zakat allocations.
The company’s net profit increased on a quarterly basis by 61.6 % or 97.3 million riyals, mainly driven by an increase in the total profit from the high sales, low operational expenses, as a result of the change in the nature of spending patterns and investment in operational operations, and a refined unit that is not repeated for zakat.