The reason of the increase (decrease) in the sales/ revenues during the current year compared to the last year |
Revenue: Nahdi continues its sales performance momentum, achieving a growth of 8.4% in 2024 compared to last year. This growth resulted in an increase of SAR 732.7 million, bringing the total to SAR 9,446.4 million compared to SAR 8,713.7 million in 2023. This was primarily driven by a 6.5% growth in the Retail business, which is mainly attributed to the company's investments in its digital capabilities, network expansion and commitment to providing competitive value to its guests. Furthermore, both Healthcare and UAE businesses continued to experience remarkable growth, almost doubling their revenues for the third consecutive year, with increases of 98.3% & 132.6, respectively. |
The reason of the increase (decrease) in the net profit during the current year compared to the last year is |
Net Profit: The company reported a net profit of SAR 820.7 million in 2024, representing 8.7% of revenue, compared to SAR 892.6 in 2023, reflecting a decrease of SAR 71.9 million. This decline was primarily attributed to the following factors: - Gross Profit: Nahdi’s gross profit witnessed a slight increase of SAR 10.6 million reaching SAR 3,532.9 million in 2024 compared to SAR 3,522.2 million in 2023, despite the ongoing investments to support sales growth. Additionally, it is important to note that last year’s gross profit included a non-recurring inventory provision release of SAR 33 million due to a change in the inventory provision policy. - Operating Expenses: Operating expenses increased by SAR 103.9 million reflecting the company’s ongoing investment in various strategic initiatives that include new openings, healthcare acceleration, UAE expansion and digitalization. Despite the increase in operating expenses, the company improved its operating expenses as % of revenue by 1.2%, reaching 28.5% compared to 29.7% last year. This improvement was driven by savings from continuous efficiency programs, which allowed the company to accelerate its strategic investments. Additionally, the increase in operating expenses was partially offset by an increase in other operating revenue. Consequently, the company’s operating profit reached SAR 873.2 million, a decrease of SAR 87.8 million or 9.1% from SAR 961.0 million last year. Furthermore, there was a net increase of SAR 21.9 million in the items below operating profit, primarily driven by higher financial charges and lease liability interest to support the revenue growth. Zakat charges decreased by SAR 37.8 million, mainly due to a one-time provision release of SAR 32.7 million following the closure of zakat assessments for previous years. As a result of these factors, the net profit declined by SAR 71.9 million or 8.1%. |
Additional Information |
- Other Comprehensive Income decreased due to increase in actuarial expense resulted from re-assessment of the actuarial estimate for the end-of-service indemnity. - In accordance with the company’s governance, it strictly adheres to Shariah principles in all areas of its business, including banking and investment activities. As a result, all costs incurred, and revenues generated from these activities are Shariah-compliant. |
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