Nahdi records SAR 888 million in net profit for FY 2022, increasing 9.3% over FY 2021, accelerating delivery of strategy

Jeddah,

Nahdi Medical Company (“Nahdi” or “the Company”), Saudi Arabia’s leading purpose-driven healthcare and wellbeing company, today reported its financial results for the fiscal year 2022 (“FY22”).

Eng. Yasser Joharji, CEO at Nahdi Medical Company said:

“At Nahdi, we are driven by our purpose, inspired by our Guests, and led by our strategy. 2022 will be remembered as a landmark year in which we set new benchmarks, accelerated the delivery of our strategy, became a publicly listed company, grew our regional footprint, and added beats to the lives of more Guests than ever before. In summary, we created more value for our key stakeholders as evidenced by a strong set of operational and financial results.

I would like to express my gratitude to our Board of Directors for its strategic counsel, our Nahdi employees for relentlessly and passionately giving their best to better serve our Guests, and our partners for their commitment and support allowing us to reach new heights and look to the future with optimism.”

Financial Performance

The Company recorded FY22 revenue of SAR 8.6 billion, representing a 6.8% increase over the previous year. The growth was primarily driven by the strong performance of the pharma segment, the return of religious tourism to the Holy Mosques in Makkah and Madinah to normal levels, and other strategic initiatives beginning to create value.

FY22 gross profit increased by 6.5% to reach SAR 3.52 billion compared to last year driven by revenue growth. This helped to deliver gross margin at 40.9% which is consistent with last year.

FY22 net profit was SAR 888 million, increasing 9.3% over the previous year, with net margin also steady at 10.3%, reflecting a combination of revenue growth and efficient opex and capex management.

During 2022, Nahdi maintained a zero-debt position and strong cash generation, with cash and cash equivalents sitting at over SAR 1 billion as of year-end. Total assets increased to reach SAR 4.9 billion, a rise of 15.1% from SAR 4.3 billion at the end of 2021, driven by growth in current assets particularly the cash position, mainly on account of business growth and an enhanced cash conversion cycle.

Demonstrating the sustainable profitability of the business, return on assets (ROA) reached 18.0% for 2022. Similarly, return on equity (ROE), maintained historical levels, reaching 39.6% for 2022. Both indicators remain significantly higher than the retailers’ industry averages.

Commenting on the financial results, Mohammed Alkhubani, Chief Financial Officer of Nahdi, said:

“During a landmark year that witnessed a highly successful IPO and the achievement of several strategic milestones, sealing our leading position in our segment, Nahdi delivered a strong set of financial results in line with the guidance provided to our shareholders and the broader market.

“We achieved a mid-single-digit topline growth and maintained a double-digit bottom line margin; EBITDA maintained its positive trajectory to reach SAR 1.6 billion for the year growing at 6.3% compared to last year and yielding a margin of 18.6%. This was also achieved by managing capex and opex effectively to yield steady margins. Moreover, the Company continued to generate healthy cashflows from operations which allowed us to invest in our strategic growth avenues, all the while holding a zero-debt position.

“We remain on track to deliver on our medium-term financial guidance of achieving mid-single digit revenue growth and maintaining bottom-line margin in our core pharmaceutical retail business, while pursuing exponential growth in our emerging healthcare business, expanding our regional footprint, and launching our state-of-the-art IMDAD distribution center to further drive efficiency and productivity returns.”