Nahdi Continues Winning with Guests, Delivering Strong 9.1% Revenue Growth in H1 2025
Nahdi Medical Company (“Nahdi” or “the Company”), Saudi Arabia’s leading purpose-driven healthcare and wellbeing Company, today reported its financial results for the second quarter of 2025 (“Q2 2025”) and for the first six months of 2025 (“H1 2025”).
Nahdi sustained its growth trajectory in the first half of 2025, supported by consistent strategic execution across both core and emerging business lines, with a continued focus on winning with guests by delivering exceptional experiences and tailored healthcare solutions that truly address their individual needs and preferences.
During the first half of the year, Nahdi’s total revenue grew by 9.1% year-on-year reaching SAR 5,163 million compared to SAR 4,730 million in the same period last year, driven by a robust performance in the Retail segment, continued growth momentum of the Healthcare, and the UAE businesses. The solid top-line performance, coupled with disciplined cost management and accelerated expansion of its network, led to a 2.7% increase in net profit, underscoring the company’s strong financial stewardship and operational efficiency. This performance reflects the company’s ability to consistently meet guest expectations and enhance their overall journey.
In the second quarter of 2025, revenue rose by 2.2%, while net profit declined by 3.8%, reflecting a high comparative base from the prior year, as well as the exceptional performance achieved in Q1 2025, which was positively influenced by a shift in seasonality.
The Company continued to expand its Retail footprint with the opening of 59 new stores across the Kingdom and the UAE, including the replacement of 33 existing locations. This brought the total store count to 1,207, reinforcing the Company’s ongoing commitment to accessibility, operational excellence, and guest-centric innovation. The Retail business remained the primary growth engine, delivering a 7.3% year-on-year increase in revenue, fueled by solid performance across both Pharma and Front Shop segments. The online channel continued its strong momentum, contributing 25% of total revenue up from 22% in the same period last year, reflecting ongoing digital engagement.
Private label sales grew by 43.4% in H1 2025, contributing 16% to total revenue, up from 12% in the same period last year, reflecting stronger guest trust in Nahdi’s own and differentiated offerings including wider range of locally manufactured products tailored to their needs.
Healthcare business maintained its positive performance, with revenue increasing by 82.2% year-on-year, supported by the opening of additional two polyclinics in Riyadh and Abha, bringing the total network to 12 polyclinics across 9 cities, in line with Nahdi’s commitment to expanding access to its healthcare services. In parallel, the UAE business delivered 41.4% revenue growth, with the opening of 9 new stores, extending Nahdi’s presence to 34 stores across all major Emirates, in line with its regional expansion growth strategy. This progress reflects Nahdi’s ongoing commitment to effectively reach and enhance accessibility for the UAE market and Emirati guests.
Gross profit witnessed an increase of 6.6%, reaching SAR 1,910 million, driven by the strong top line performance. Despite an increasingly competitive landscape and the company’s strategic growth in the Healthcare and online businesses, where these businesses operate not only with lower gross margins but benefit from leaner operating expenses, Nahdi maintained a healthy gross margin of 37.0%, compared to 37.9% in the same period last year.
During the period, the company accelerated new store openings while continuing to invest in the expansion of its Healthcare and UAE businesses, as well as in digital transformation initiatives. These strategic investments led to higher operating expenses and affected the phasing of expenses throughout the period, which impacted the profitability growth. However, this impact was partially offset by ongoing operational efficiency initiatives, which contributed to an improvement in operating expenses as a percentage of revenue by 0.4%, reaching 27.1%, compared to 27.5% in the same period last year. Accordingly, operating profit grew by 5.1%. These results underscore Nahdi’s continued progress in operational efficiency and cost discipline.
Items below operating profit reflected a net increase in expenses of SAR 13 million, primarily to support revenue growth and accelerated business expansions.
Reflecting Nahdi’s financial performance in the first half of the year, the Board of Directors approved a cash dividend distribution of SAR 2.60 per share for H1 2025, representing a 4.0% increase compared to the same period last year.
Nahdi delivered a solid first-half performance, demonstrating the strength of its business fundamentals and the successful implementation of its strategic priorities. The Company continued to advance across its Retail, Healthcare, and regional operations, reinforcing its competitive position in a dynamic market. Central to this performance was Nahdi’s focus on its guests by delivering more personalized, accessible, and seamless health and wellbeing experiences, fostering stronger relationships and long-term loyalty. Looking ahead, Nahdi remains committed to accelerating investments in innovation, digital transformation, and healthcare infrastructure, supporting its ambition to create long-term value for guests, shareholders, and the broader community.
