Aldawaa not impacted by major shareholders’ stake transfer: Exec

Fahad Alfarraj Deputy CEO of Aldawaa Medical Services Co.

Fahad Alfarraj, Deputy CEO of Aldawaa Medical Services Co., said the transfer of the major shareholders’ stake, which stand at 17 million shares, to Ramlah Holding Co., changes ownership structure but has no impact on the company’s performance as the holding company has a solid governance.

In an interview with Argaam on the sidelines of EFG Hermes Saudi Forum in London, Alfarraj said the percentage of foreign investors in the company is on the rise, which reflects their confidence in the Kingdom’s health system and the company’s role to enable the sector as part of its efforts to provide services in almost 900 branches I over 135 branches in the Kingdom.

Market governance, the solid economy, geopolitical indicators and stability in the Kingdom, as well as the easy access of foreign investors are together an effective factor in raising the number of foreign investors in the Saudi market.

Foreign investors are keen to know the company’s latest plans and developments. Their inquiries are answered by the company’s participation in international conferences, such as the EFG Hermes Saudi Forum in London.

Aldawaa received all licenses required for the factory operation and the registration of some products with the Saudi competent authorities, Alfarraj explained, adding that its operations currently focus on vital signs.

The company’s plant contributes to delivering the Saudi Vision 2030 by localizing industries in general, and the medical equipment sector in particular. This is attained through the localization of some products, which were earlier imported from other companies and the manufacturing of these products with better efficiency. Any other updates on the factory will be announced in the first quarter of 2024, he added.

Elsewhere, Alfarraj added that Aldawaa’s half-year results topped consensus estimates, as sales grew by over 9% year-on-year. Operating income also jumped by 47% YoY, driven by sales growth, automation and improved operation management.

Aldawaa owns one the of largest automated warehouses in the region with a capacity of more than one million pharmaceutical products. This in turn helped Aldawaa provide services to its customers and grow sales, outpacing the increase in operating expenses. Accordingly, the company’s operating income improved in H1 2023.

The company employs cadres with an experience of more than 30 years I the health sector.  It also established Proceed Logistics Co., headquartered in Sudair Industrial City, to provide services for the health sector in coordination with the Saudi Food and Drug Authority (SFDA) and Ministry of Transport.