Nahdi reports profit rise of 22% to SR238 mln in 1Q

Nahdi Medical Co. announced that its profits after zakat and tax rose 22% to SR 238 million in the first quarter of 2022 compared to 195 million during the same period of 2021.

This came after Nahdi announcement on Tuesday of the preliminary financial results for the period ending on 31.03.2022 (three months).

The company’s operational profit climbed 17% to SR 264 million in the 1^st quarter of the current year from SR 226 million in the same period of the previous year.

Gross profit of Nahdi advanced 9% to SR 852 million in the first quarter of this year from SR 780 million a year ago, while the profit per share soared to SR 1.83 from SR 1.5.

“Net Profit for Q1 2022 increased by 21.8% to reach SAR 237.5 Million as compared to SAR 195.0 Million in the corresponding quarter of the previous year, due to the following:

1. Revenues: Revenue increased by 5.0% in Q1 2022 reaching SAR 2,079.5 Million, with an increase of SAR 98.4 Million compared to SAR 1,981.1 Million in the corresponding quarter of the previous year, mainly driven by the growth within the Pharma segment which was impacted by the new Corona wave (Omicron variant), in addition to increased infection rates compared to 2021 with the easing up of corona related restrictions such as social distancing and limited social gatherings.

1. Gross Profit: Gross Profit increased by 9.2% in Q1 2022 reaching SAR 851.7 Million, with an increase of SAR 72.0 Million compared to SAR 779.7 Million in the corresponding quarter of the previous year as a result of sales growth and positive product mix. Gross margin improved by 1.6% reaching 41.0% of revenue compared to 39.4% in Q1 2021 due to the favorable product mix which is mainly resulting from the Omicron wave in Q1.
2. Operating Expenses: Operating Expenses increased by 8.1% in Q1 2022 reaching SAR 600.6 Million, with an increase of SAR 45.2 Million compared to SAR 555.3 Million in the corresponding quarter of the previous year mainly to support the business growth, in addition to the commencement of the new distribution center operations. The increase in operating expenses was partially offset by the increase in Other Operating Revenue. The net balance of operating expenses and other operating revenue increased by 6.1% in Q1 2022 compared to Q1 2021, which is closely in line with revenue growth.
3. Net Profit: Net Profit increased by 21.8% reaching SAR 237.5 Million, with an increase of SAR 42.5 Million compared to SAR 195.0 Million in the corresponding quarter of the previous year. The Net Profit increase was driven by the growth in revenue and gross profit. The profit margin improved by 1.6% reaching 11.4% of revenue compared to 9.8% in Q1 2021, mainly driven by the 1.6% improvement in gross margin due to the favorable product mix (as explained above). “

Net Profit increased by 65.8% in Q1 2022 compared to Q4 2021, reaching SAR 237.5 Million, with an increase of SAR 94.3 Million compared to SAR 143.2 Million in the previous quarter, mainly driven by the sales growth and the phasing pattern of operating expenses by quarters.