Revenue from sale of products increased by 15.9% up to SAR 1,472.8 million on the back of an improved client mix, enhanced sales in both private and government sectors, and a surge in product demand, capitalizing on the overall positive momentum in the Saudi pharmaceutical sector.

Concurrently, revenue from services reported a strong annual growth of 19.7% supported by robust performance from medical services.

•Revenue: Increased by 16.3%, or the equivalent of SAR 231.3 million, to SAR 1,653.1 million on the back of strong growth in revenue from sale of products as well as services.

•Gross Profit: Increased by 24.9%, the equivalent of SAR 141.1 million, to SAR 708.1 million primarily on FY2023 revenue growth outpacing the 10.5% rise in cost of revenue which clearly reflects the increased operational efficiency and successful cost management strategies initiated during the year. This translated to a FY2023 gross profit margin of 42.8% versus 39.9% for last year.

•Selling, General and Administrative Expenses (SG&A): Decreased by 2.8%, the equivalent of SAR 17.7 million, to SAR 604.7 million, compared to SAR 622.4 million in FY2022. This decrease reflects early gains from strategic optimizations within the sales and commercial teams, as well as cautious spending throughout the year.

•Research and Development Expenses (R&D): Decreased by 2.8%, equivalent to SAR 1.2 million, down to SAR 41.5 million on a higher base in FY 2022 which included SAR 6.0 million of written-off R&D cost. FY2023 R&D expenses, including capitalized costs, reached 3.2% of revenue.

•Depreciation & Amortization: Decreased to SAR 78.5 million compared to SAR 88.8 million last year on lower amortization expense thanks to the full amortization of several intangible assets.

•Operating Profit: Amounted to a profit of SAR 89.4 million compared to a loss of SAR 114.4 million reported last year. This improvement stemmed from a robust gross profit performance and was supported by lower operating expenses as a result of strategic cost management and efficiency improvements.

•Net Finance Cost: Increased by 73.2% to SAR 73.2 million from SAR 42.3 million in FY2022, predominantly on higher prevailing interest rates in FY2023 compared to last year.

•Zakat and Income Tax Expense: Increased by SAR 19.3 million to SAR 45.2 million, which includes a SAR 21 million charge related to a Zakat assessment for prior years.