Aldawaa Medical Services Co. announces its Interim Financial results for the Period Ending on 2026-03-31 ( Three Months )

Revenue performance during the current quarter reflected a 7.2% decline amid market changes and evolving consumer trading patterns.

The Group continued to execute on its strategy of building a more integrated and diversified business platform whereby Wholesale and Logistics revenues delivered strong growth, increasing by 65.8% and 58.8%, respectively, reflecting continued progress in strengthening the Group’s end-to-end value chain and operating ecosystem.

Net profit for the first quarter of 2026 decreased by SAR 83 million, or 78.8%, compared to the same period of the last year, primarily driven by the corresponding decline in revenue and gross profit, while maintaining a broadly stable gross margin of 35.6%. The decline is also contributed by higher operating expenses and non-recurring items during the period as below.

1. Increased Strategic Expenses:

Selling and distribution expenses increased by 5.8%.

This increase is a result of completing well-planned, long-term investments aimed at enhancing the company's competitiveness. These investments included: continued expansion through the opening of additional branches, improving multi-channel sales capabilities by launching a digital platform and upgrading support systems, and investing in the distribution network and logistics services.

2. Non-Recurring Items (One-Time Impact):

- Recording government expenses in the first quarter of 2026 amounting to SAR 27 million related to the renewal of Iqama and work licenses for 93% of the company's non-Saudi employees, of which SAR 20.3 million pertains to the remaining periods of the current year.

- Recording a non-recurring impairment provision on customer accounts amounting to SAR 5 million.

The Company’s revenue in the first quarter of 2026 decreased by SAR 137.5 million, or 8.2 %, compared to the fourth quarter of 2025, reflecting the typical seasonal pattern in the retail sector, where the fourth quarter is supported by higher commercial activity and seasonal campaigns across both online and offline channels.

Net profit in the first quarter of 2026 decreased by SAR 38.7 million, or 63.5%, compared to the fourth quarter of 2025, primarily driven by the corresponding decline in revenue and gross profit, and also contributed by higher operating expenses.

The increase in operating expenses was mainly driven by higher marketing expenses and the recording of government-related expenses in the first quarter of 2026 amounting to SAR 27 million, associated with the renewal of residency and work permits of which SAR 20.3 million relates to the remaining periods of the current year. In addition a non-recurring impairment provision on customer accounts amounting to SAR 5 million.