- Gross Profit: Gross profit increased by SAR 28.6 million reaching SAR 882.4 million in the fourth quarter of 2024 compared to SAR 853.8 million for the same quarter of the previous year driven by the sales growth.

- Operating Expenses: The company’s operating expenses increased by SAR 25.4 million or 3.8%, which is below the rate of sales growth. The increase in the operating expenses was mainly to support the company’s investments into various strategic initiatives including new openings, healthcare acceleration, UAE expansion and digitalization, which was partially offset by an increase in other operating revenue.

As a result of the above factor, the operating profit increased by SAR 7.3 million or 3.9%.

Moreover, there was an increase of SAR 17.6 million in the items below operating profit, mainly in financial charges to support the revenue growth, along with an increase of SAR 2.4 million in zakat accruals.

Accordingly, the net profit declined by SAR 12.7 million or 7.4%.

- Gross Profit: Gross profit increased by SAR 31.4 million or 3.7% in the current quarter driven by a positive sales mix.

- Operating Expenses: Operating expenses increased by SAR 20.9 million, which is mainly due to the company’s planned phasing pattern of operating expense, that was partially offset by an increase in other operating revenue.

As a result of the above, the company’s operating profit increased by SAR 16.5 million. It is important to note that the company’s operating profit in the second half of the year is always lower compared to the first half of the year due to the seasonality factor in the first half, the higher operating expenses spending and the investment patterns of the business in the latter half of the year.

It is worth mentioning that the net profit for the previous quarter included a reversal of zakat provision of SAR 32.7 million, which resulted from closing the zakat assessment for previous years.

As a result of all the above factors, the net profit declined by SAR 24.3 million or 13.4%.

- 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%.

- 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.