Aldawaa’s net income drops 79% in 1Q

A combination of long-term investments and significant non-recurring expenses weighed on Aldawaa Medical Services’ 1Q financial results. The pharma giant posted a 78.8% y-o-y drop in net income to SAR 22.3 mn during the quarter, while revenue fell 7.2% y-o-y to SAR 1.5 bn, according to a Tadawul filing.

Behind the numbers: A 5.8% y-o-y uptick in selling and distribution expenses weighed on the firm’s bottom line as it expanded its branch network and rolled out a new digital platform. This was compounded by SAR 27 mn in government fees to renew residency and work permits for most of the firm’s non-Saudi workforce, alongside a non-recurring SAR 5 mn impairment provision on customer accounts. Meanwhile, the firm attributes the revenue drop to volatile market conditions and shifting consumer patterns, adding that strong results from its wholesale and logistics verticals helped offset the decline.

REMEMBER- Aldawaa previously announced it will liquidate its overseas subsidiaries, a move aimed at consolidating and expanding its operations within the Kingdom. This includes Hollinz GmbH and Ronzak GmbH in Germany, as well as Glanzzen Freezone and Aldawaa Medical Services Freezone in Dubai.