•Revenue: Increased by 6.9%, or the equivalent of SAR 24.6 million, to SAR 381.6 million.

Revenue from sale of products reported an increase of 8.7% up to SAR 343.6 million fueled by sales improvement within the private and government channels. This was marginally offset by a drop in revenue from services which reported a 6.9% decline due to lower agency services from one of our subsidiaries.

•Gross Profit: Increased by 34.7%, or the equivalent of SAR 42.8 million, up to SAR 166.0 million for Q3 FY2023. This improvement can be primarily attributed to the commercial strategy, which resulted in a favorable client mix, an improved portfolio of marketable products, and effective cost management. Consequently, the gross profit margin for Q3 FY2023 came at 43.5%, compared to 34.5% in the same quarter of the previous year.

•Selling, General and Administrative Expenses (SG&A): Rose by 4.8%, the equivalent of SAR 6.9 million, to SAR 150.4 million, compared to SAR 143.5 million in Q3 FY2022. This slight increase stemmed primarily from higher spending on selling and marketing expenses, mainly driven by increased sales promotion costs. G&A expenses were effectively managed through strict spending control measures.

•Research and Development Expenses (R&D): Decreased 33.3%, the equivalent of SAR 3.7 million down to SAR 7.5 million. This drop compared to the same quarter last year was due to lower salaries and benefits which were capitalized during the quarter. However, this was balanced by higher clinical trials and product registrations expenses, which align with the Company’s efforts to restructure its product portfolio. Q3 FY2023 R&D expenses, including capitalized costs, reached 4.2% of revenue compared to 3.2% in Q3 FY2022.

•Depreciation & Amortization: Decreased by 5.8% to 20.0 million compared to SAR 21.2 million same quarter last year due to the full amortization of some of the intangible assets.

•Operating Profit: Recorded a loss of SAR 16.6 million compared to a loss of SAR 30.0 million reported in Q3 FY2022. During the quarter, the Company faced some legal claims that negatively impacted the income statement by requiring booking additional expenses of SAR 31.2 million. A substantial portion of these charges were provisional, reflecting the company's commitment to exercising a high level of caution regarding the potential liabilities arising from these labor disputes. Excluding these non-core charges and provisions, adjusted operating profit for Q3 FY2023 would come to SAR 14.6 million, a significant increase compared to the loss of SAR 30.0 million reported in Q3 FY 2022, which stemmed mainly from strong growth in gross profit and muted growth in operating expenses. This translated to Q3 FY2023 Adjusted EBIT and Adjusted EBITDA margins of 3.8% and 9.1% respectively.

•Net Finance Cost: Increased by 50.8% to SAR 24.2 million from SAR 16.0 million in Q3 FY2022. The increase was primarily because of higher prevailing interest rates in Q3 FY23 compared to Q2 FY23.

•Revenue: Dropped by 6.6%, or the equivalent of SAR 27.1 million, reaching SAR 381.6 million. This decline is attributed to the seasonal pattern, as the third quarter is typically the least robust for the Saudi pharmaceutical sector.

•Gross Profit: Decreased by SAR 17.5 million (-9.5%) to SAR 166.0 million for Q3 FY2023 primarily on lower overall sales. This translated to a Q3 FY2023 gross profit margin of 43.5%, a marginal decline compared with the 44.9% reported in Q2 FY2023.

•Selling, General and Administrative Expenses (SG&A): Rose by 9.0%, or the equivalent of SAR 12.4 million, to reach SAR 150.4 million. This increase was primarily due to higher G&A expenses related to IT upgrades including the implementation of cloud solutions as well as elevated consultancy and legal fees linked to the Company’s ongoing M&A due diligences activities. S&M expenses also picked up during the quarter after a quieter period in preparation for Q4 season. As guided for, Q3 FY23 SG&A expenses increased to 39.4% of revenue from 33.7% in the previous quarter.

•Depreciation & Amortization: Remained relatively stable at 20.0 million compared to SAR 20.6 million in previous quarter.

•Operating Profit (Loss): came at a loss of SAR 16.6 million compared to SAR 35.1 million in Q2 FY2023. Excluding the non-core charges and provisions related to the legal claims mentioned above, Q3 FY 2023 adjusted operating profit would be SAR 14.6 million, a decrease of 58.4% down compared to previous quarter, on lower gross profit and higher operating expenses compared to the previous quarter.

•Net Finance Cost: Increased by 53.4% to SAR 24.2 million due to the recognition of financial charges related to EOSB actuarial valuation for the period. Excluding this charge, net finance cost would have exhibited a sequential drop on lower debt balances.

•Revenue: Increased by 25.1%, or the equivalent of SAR 265.5 million, to SAR 1,322.4 million on the back of a beneficial change in the client mix, expansion of sales across the private and government channels, and a rise in sales volume due to high demand for the Company's products.

•Gross Profit: Increased by 41.3%, or the equivalent of SAR 177.3 million, up to SAR 606.4 million for 9M FY2023 as a result of the strong 25.1% year-on-year growth in 9M FY2023 revenue, which surpassed the rise in cost of revenue, which expanded by 14.0% compared to the same period last year.

•Selling, General and Administrative Expenses (SG&A): Increased by 2.5%, the equivalent of SAR 11.2 million, to SAR 450.5 million compared to SAR 439.3 million in 9M FY2022. This subtle increase reflects the early offshoots of the ongoing cost optimization initiated in 2023.

• Depreciation & Amortization: Decreased by 7.7% to 61.5 million compared to SAR 66.6 million in 9M FY2022 on lower intangibles assets.

•Operating Profit: Recorded a profit of SAR 87.9 million, a significant improvement versus an operating loss of SAR 31.8 million in 9M FY2022. Excluding the non-core charges and provisions booked in Q3 FY 2023 related to the labor disputes as mentioned above, the adjusted 9M FY2023 operating profit would be SAR 119.1 million which would imply an adjusted EBIT and adjusted EBITDA margins for 9M FY2023 of 9.0% and 13.7% respectively, in course to achieve our FY 2023 EBITDA target of 10-11%.

• Net Finance Cost: Increased by 57.3% to SAR 51.5 million from SAR 32.7 million in 9M FY2022. The increase stemmed from higher prevailing interest rates.