Nahdi Medical Company · TADAWUL:4164
Nahdi Medical — FY2023 Earnings Presentation
18 slides from Nahdi Medical's earnings presentation, March 2024
Slide 1: Nahdi Medical Company Investor Presentation FY2023
March 2024 Nahdi Medical Company INVESTOR PRESENTATION FY2023 Nahdi Medical Company | FY 2023 EARNINGS CALL 1
Slide 2: FY 2023 Financial Highlights
FY 2023 Financial Highlights RESILIENT FINANCIAL In SAR (YoY % Change) FY 2023 Q4 2023 PERFORMANCE Revenue 8.71bn (+1.1%) 2.21bn (+3.6%) Gross Profit 3.52bn (-0.7%) 865mn (+1.0%) Net Profit 893mn(+0.5%) 171mn (+33.2%) STRONG CASH FLOW Free Cash Flow Capex GENERATION SAR 984mn 4.4% of revenue ZERO DE
Slide 3: We exist to add beats to our Guests' lives everyday
We exist to add beats to our Guests’ lives everyday Vision #1 140+ To be the most loved & trusted health and wellbeing partner for all our Guests pharmacy chain cities In KSA with 1,120 stores serving 95% of KSA population Mission 100mn+ 83% Guests / yr of Revenue To exceed all our Guests’ expectati
Slide 4: Our passion for people always delivers value to our Guests
Our passion for people always delivers value to our Guests HRSE Award Employer of the Year 2023 Invested in the success of our people Always cultivating Saudi talents More than 500,000 hours of training Strong Partnerships conducted annually 24 Universities. providing 2,000+ training opportunities i
Slide 5: Guest satisfaction continues to validate our long-term strategy
Guest satisfaction continues to validate our long-term strategy Significant brand following Stronger brand equity YoY Net Promoter Score (NPS) of retailers in KSA (YTD) 83% Nielsen Store Equity Index of revenue generated from Nahdi “Nuhdeek” Guests 6.9 6.8 7.0 Series1 Series2 Series3 62 62 Strong 56
Slide 6: We are Striving for Excellence – Accolades Q4 2023
We are Striving for Excellence – Accolades Q4 2023 2nd #2 #7 most in healthcare valuable Saudi in Saudi Arabia in 2023 Brand 2023 sector One the 10 Most Admired most trusted Pharmacy & Healthcare GCC & KSA organizations, KSA Nahdi Medical Company | FY 2023 EARNINGS CALL 6
Slide 7: Nahdi will continue to strengthen its flagship omnichannel offering
Nahdi will continue to strengthen its flagship omnichannel offering while investing in higher margin growth areas Expanding our Omnichannel Footprint and Strengthen Core Retail offering Brick & Mortar Private Label & Online Direct Imports SAR 1.1BN SAR 1.4BN Store Mix Optimization Robust Revenue Rev
Slide 8: Nahdi's key differentiator is its diversified integrated omnihealth system
Nahdi’s key differentiator is its diversified integrated omnihealth system Evolve into a leading omnihealth platform Healthcare Performance ▪ Revenue Doubled vs last year ▪ Total Healthcare business reported Breakeven, despite opening new 3 clinics ▪ Clinic Guests’ visits exceeded 1 million guests,
Slide 9: 2023 market headwinds gave us pause to make a series of optimizations
2023 market headwinds gave us pause to make a series of optimizations, particularly in the Front Shop, to ensure Nahdi is positioned sustainably to continue exceeding Guests expectations every day and everywhere. Nahdi Medical Company | FY 2023 EARNINGS CALL 9
Slide 10: Mitigation Actions Outcomes
Mitigation Actions Outcomes Front Shop Turnaround ✓ Invest in pricing to sustain competitiveness vs online and new channels ✓ Expedite full potential of Nahdi Online and Global Total revenue +3.6%; E-commerce 5000 new SKU’s & ✓ Continue nurture strategic partnerships with our vendors Beauty category
Slide 11: Revenue grew steadily through FY 2023
Revenue grew steadily through FY 2023 1,086 1,120 Revenue in Q4 grew 3.6% year- pharmacies 1,164 1,148 1,152 on-year, driven by the Pharma SAR mn 8,714 and Beauty categories registering 8,642 8,616 7,825 8,066 6.1% and 3.3% increases, respectively Revenue Strong performance of Nahdi’s fast- growing
Slide 12: Resilient gross profit margin
Resilient gross profit margin Margin Gross margin held firm Gross 41.0% 40.9% 41.1% 40.4% at 40.4%, in line with guidance SAR mn The investments in Front Shop marketing mix and sales promotions, was Gross Profit -0.6% partially offset by non- 3,545 recurring inventory provision 3,522 3,250 3,305 rel
Slide 13: Strong EBITDA outcomes
Strong EBITDA outcomes Revenue Highly profitable business EBITDA/ 16.7% 16.9% 18.7% 18.6% 18.1% Consistently delivering SAR mn best in class retail EBITDA margin -1.3% Amount 1,508 1,602 1,581 1,462 1,310 2019 2020 2021 2022 2023 Source: Company disclosure Nahdi Medical Company | FY 2023 EARNINGS CA
Slide 14: Attractive net profit profile
Attractive net profit profile Net Profit/ Revenue 8.8% 9.8% 10.1% 10.3% 10.2% Net profit of SAR 893 million, reflecting a 10.2% margin SAR mn Margin remained flat in spite of ongoing investments in strategic initiatives including healthcare, e-commerce, 0.5% and UAE operations. Net Profit 849 813 88
Slide 15: Zero debt with strong cash flow from operations and working capital
Zero debt with strong cash flow from operations and working capital Capex Revenue Best-in-class ROA/ ROE Capex 2.5% 3.7% 3.7% 3.1% 4.4% SAR mn Highly profitable business 384 320 306 275 with industry leading ROE Amount 234 and ROA in 2023. SAR 1,369mn Net Cash 2019 2020 2021 2022 2023 Net Working Ca
Slide 16: Consistent dividend distribution to shareholders
Consistent dividend distribution to shareholders Dividends Payout % SAR/Share 78% 80% Sustainable and 77% 98% 78% consistent Dividends 6.8 6.9 payouts 6.5 6.3 6.2 5.3 5.3 5.5 In line with the 5.1 company’s dividends distribution policy 4.1 supported by strong financial performance and high liquidity
Slide 17: Winning with our Guests
Winning with our Guests Engage Drive Invest Guests & Partners Efficiencies & Capabilities in Innovation Nahdi Medical Company | FY 2023 EARNINGS CALL 17
Slide 18: Thank You
THANK YOU Contacts: Investor Relations Department Email: IR@nahdi.sa Website: https://investors.nahdi.sa/ P. O. Box 17129 Jeddah 21484, Saudi Arabia Nahdi Medical Company | FY 2023 EARNINGS CALL 18