Nahdi Medical Company posted strong revenue growth of SR2.47 billion ($660 million) for the second quarter (Q2) an increase of 10.8% on Q1 2024. For the first half of the year, Nahdi recorded SR4.73 billion in revenue, an increase of 9.1% on H1 2023.

 

Nahdi is posting positive revenue growth for the third consecutive quarter as a result of its 8.9% retail growth and reaping the outcome of its facilitated investments into the company’s strategic growth areas, with healthcare and UAE delivering 100.1% and 186.8% revenue increases, respectively, a release said. 

 

The company’s retail performance is driven by the ongoing pharma growth momentum and its investment into front shop categories.  

 

Emerging businesses

Nahdi's investment in its emerging businesses is yielding strong results, with the company experiencing accelerated growth in its online business. In the second quarter of 2024, the online business contributed 23.6% to total revenue, up from 16.4% during the same period last year, mainly driven by front shop categories. 

 

This growth was primarily driven by the expanded product assortment, with +8000 SKUs added to Nahdi Online during the first half of the year. Since Q2 2024, Guests in the UAE enjoy the same access to the full range of products as Nahdi’s Guests in Saudi Arabia. 

 

The increase in the online business revenue contribution reflects Nahdi’s ability to adapt to evolving consumer behaviours and leverage its digital capabilities to expand its reach, making it one of the leading e-commerce platforms in the region. 

 

Nahdi strategically strengthened its market position in the region, opening 8 pharmacies in 2024 serving five Emirates in the UAE with revenues soaring by 186.8%.  

 

Expanding network

During the second quarter, Nahdi expanded its polyclinic network by opening a new location in Yanbu. With a total of 8 polyclinics now in operation, the company has served over 680,000 guests in the first half of the year vs 460,000 guests in the same period last year, resulting in a 100.1% revenue increase.

 

In the second quarter of 2024, the company delivered a solid improvement in its operating expenses as a percentage of revenue which improved by 1.1% to reach 27.1%, compared to 28.2% during the same quarter last year. This improvement in operating expenses demonstrates the company's ongoing commitment to operational efficiency and cost optimisation, which fuels Nahdi’s continued growth and allows the company to facilitate the implementation of its strategic investments, all along maintaining its gross margin at 38% for the first half of the year 2024. 

 

Nahdi’s balance sheet remains healthy with a strong cash position and zero debt, with returns from Islamic Murabaha time deposits further supporting the profitability of the company. Moreover, the company’s sustained a healthy cash flow supported by strong operational fundamentals and efficient working capital management. 

 

As a result of Nahdi’s strong financial performance, Nahdi’s Board of Directors approved a cash dividend distribution of SR2.50 per share for the first half of 2024.--TradeArabia News Service