Jeddah, Saudi Arabia: Nahdi Medical Company (“Nahdi” or “the Company”), Saudi Arabia’s leading purpose-driven healthcare and wellbeing Company, today reported its financial results for the first quarter of 2026 (“Q1 2026”)

Nahdi continues to deliver solid performance, maintaining sustained top-line growth while actively investing in long-term growth initiatives.

During the quarter, the Company’s revenue increased by 6.1 % year-on-year to reach SAR 2,794 million, led by growth in the Retail business, accelerated growth in the Healthcare and regional expansion businesses. Gross profit grew by 4.7% supported by revenue growth. The Company reported a net profit of SAR 236 million, compared to SAR 255 million in the same quarter last year, lower by 7.6% or SAR 19 million. Excluding one-time zakat provision release of SAR 18 million in Q1 2025, net profit performance remained almost flat. These financial results demonstrate the Company’s ability to deliver sustained performance amid challenging market dynamics.

The Retail business delivered a 4.7% year-on-year revenue increase, driven by growth in both Pharma and Front Shop segments. The online business continued to outperform, contributing 31% of total revenue, up from 24% in the same quarter last year, reflecting ongoing digital engagement and continued investments into its digital and AI capabilities.

Private label offerings continued their growth momentum, with revenue increasing by 18% and their contribution to total revenue rising to 18%, up from 16% in the same quarter last year. This result underscores growing guests’ trust in Nahdi’s own and differentiated offerings, including locally manufactured products, which highlights the success of its value-driven, quality-focused strategy. The increased contribution from private label enabled the Company to continue its investments into revenue growth.

The Healthcare business maintained its upward momentum, with revenue increasing by 35% year-on-year, supported by 14 polyclinics spread across 9 cities in the Kingdom and a well-integrated digital platform.  Additionally, the regional expansion business delivered 32% revenue growth, in line with its regional expansion growth strategy.

Gross profit for the quarter increased by 4.7 % to reach SAR 988 million, with a gross margin of 35.3%, compared to 35.8% in the same quarter last year. The margin compression was primarily driven by the change in business mix with the accelerated growth in Healthcare, online and payers’ revenue. On the other hand, the operating expenses increased as the Company continued to invest in its long-term growth strategic initiatives represented in Healthcare, regional expansion and AI new technology. As a result, operating profit declined by 3.8 % compared to the same quarter last year.

Overall, the Company’s net profit remained almost flat compared to the same quarter last year, while the year-on-year comparison reflects a planned decline of 7.6%, driven by the one-off benefit in Q1 2025 and the accelerated investments in future strategic initiatives.

Nahdi’s first-quarter results demonstrate the stability of its business approach and the progress of its strategic initiatives. The Company continues to see growth across Retail, Healthcare, and regional operations, supporting its plans for long-term development. Moving forward, Nahdi intends to maintain its focus on innovation, expanding digital capabilities, and strengthening healthcare infrastructure to provide value for guests, shareholders, and the broader community.

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