The key factors contributing to this performance are as follows:

- Gross Profit: Gross profit increased by 11.3% or SAR 95.2 million to reach SAR 940.6 million, compared to SAR 845.4 million in the same quarter last year. Gross margin improved by 2.3% reaching 38.2% from 35.9% in the same quarter last year, supported by a favorable shift in product mix within the retail business.

-Operating Profit: Operating profit recorded a solid increase of 6.7% or SAR 11.7 million reaching SAR 187.6 million, compared to SAR 175.8 million in the same quarter last year. This increase was mainly driven by higher gross profit, supported by the increased revenue and a favorable product mix. The improvement in gross profit was partially offset by higher operating expenses, reflecting the Company’s strategic investments in new pharmacy openings while continuing to invest in the expansion of its Healthcare and UAE businesses, and ongoing digital transformation initiatives.

Additionally, there was an increase of SAR 4.6 million in the items below operating profit mainly related to higher interest in lease liabilities incurred to support the accelerated business expansions. The difference in zakat is mainly due to a one-time zakat provision release of SAR 32.7 million recorded in the same quarter last year.

As result of the above factors, the company recorded SAR 161.2 million in net profit.

The key factors contributing to this performance are as follows:

- Gross Profit: Gross profit increased by 8.1% or SAR 213.4 million to reach SAR 2,850.3 million, compared to SAR 2,637.0 million in the same period last year. Gross margin rose by 20 bps reaching 37.4% compared to 37.2% in the same period last year.

- Operating Profit: Operating profit increased by 5.5% or SAR 37.3 million, reaching SAR 718.2 million compared to SAR 680.9 million in the same period last year. This strong performance was achieved despite the Company’s continued investments to support future growth, including opening new pharmacies, expanding its Healthcare and UAE businesses and advancing digital initiatives. These investments resulted in higher operating expenses; however, this was partially offset by operational efficiencies and strong revenue growth, which supported the increase in operating profit.

Items below operating profit recorded a net increase of SAR 45.4 million, primarily due to higher interest in lease liabilities, to support the accelerated business expansions.

As result of the above factors, the Company recorded SAR 654.8 million in net profit.

-In accordance with the Company’s governance, it strictly adheres to Shariah principles in all areas of its business, including banking and investment activities. As a result, all costs incurred, and revenues generated from these activities are Shariah-compliant.