| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is | The company’s revenue increased by 7.9% during the second quarter of the current year to reach 321.75 million Saudi Riyals , compared to 298.24 million Saudi Riyals for the same quarter of the previous year. This growth was primarily driven by the performance of the company’s main business segments; the Pharmaceutical Products Segment posted a 24.4% growth to reach 72.08 million Saudi Riyals (compared to 57.92 million Saudi Riyals) due to higher retail sales at the subsidiary, while the Medical Services Segment enhanced total revenues with a 3.9% increase, generating 249.67 million Saudi Riyals compared to 240.32 million Saudi Riyals in the corresponding quarter of the previous year. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | The company’s net profit increased during the second quarter of 2026 by 16.0% year-on-year to reach 71.89 million Saudi Riyals, compared to 61.96 million Saudi Riyals for the same quarter of the previous year.This increase is mainly attributed to the following reasons:1) Revenues: Company revenues during the current quarter rose by 7.9% to reach 321.75 million Saudi Riyals, compared to 298.24 million Saudi Riyals for the corresponding quarter of the previous year.2) Expected Credit Losses Provision: A reversal of expected credit losses (ECL) provision amounting to 9.17 million Saudi Riyals was recorded in the current quarter, compared to a provision charge of 10.91 million Saudi Riyals in the same quarter of the previous year, driven by an improvement in collection pace from key clients.3) Gain on Disposal of Property and Equipment: A gain of 6.99 million Saudi Riyals was recognized on the disposal of property and equipment, resulting from the compulsory expropriation of a parcel of land owned by the company in northeast Riyadh (Al-Munsiyah district), as previously announced on the Tadawul website on June 28, 2026.4) Share of Profit from Associates: Reached 14.69 million Saudi Riyals for the current quarter, representing an increase of 108.13% compared to 7.06 million Saudi Riyals for the same quarter of the previous year. |
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is | The company’s revenues stabilized in the second quarter of 2026 at 321.75 million Saudi Riyals, remaining at a close level to the first quarter of the same year (319.09 million Saudi Riyals), representing a slight increase of 0.8%.This slight increase was primarily driven by a 1.1% growth in the Medical Services Segment revenues, which reached 249.67 million Saudi Riyals in the current quarter compared to 246.94 million Saudi Riyals in the previous quarter. |
| The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is | The company continued to strengthen its financial performance during the second quarter of 2026, with net profit growing by 27.8% compared to the first quarter of the current year, reaching 71.89 million Saudi Riyals up from 56.24 million Saudi Riyals.This quarter-on-quarter growth is primarily driven by the following factors:1) Expected Credit Loss (ECL) Provision: A reversal of expected credit losses provision amounting to 9.17 million Saudi Riyals was recorded in the current quarter, compared to a provision charge of 17.31 million Saudi Riyals in the previous quarter, as a result of an improved collection pace from key clients during Q2 compared to Q1.2) General, Administrative, and Marketing Expenses: Total general, administrative, and marketing expenses for the current quarter decreased by 6.44 million Saudi Riyals to reach 30.44 million Saudi Riyals, compared to 36.88 million Saudi Riyals for the previous quarter. This was mainly due to a decline in promotional expenses and advertising costs during the second quarter compared to the first quarter.3) Gain on Disposal of Property and Equipment: A gain of 6.99 million Saudi Riyals was recognized on the disposal of property and equipment, resulting from the compulsory expropriation of a parcel of land owned by the company in northeast Riyadh (Al-Munsiyah district), as previously announced on the Tadawul website on June 28, 2026. |
| The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is | The company’s total revenue for the first half of 2026 recorded a 6.8% year-on-year growth, reaching 640.84 million Saudi Riyals, compared to 600.12 million Saudi Riyals for the same period in 2025.This increase was the result of growth across the company’s main business segments, detailed as follows:1) Pharmaceutical Products Segment: Revenue grew by 21.0% to reach 144.23 million Saudi Riyals for the current period (compared to 119.24 million Saudi Riyals for the same period last year), driven by higher retail sales at the subsidiary level.2) Medical Services Segment: Continued to support total revenue by achieving a 3.3% growth, with its revenue reaching 496.61 million Saudi Riyals, compared to 480.88 million Saudi Riyals for the same period of the previous year. |
| The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is | The company’s net profit decreased during the first half of 2026 by 5.7% year-on-year to reach 128.13 million Saudi Riyals, compared to 135.89 million Saudi Riyals for the same period in 2025.This decrease is mainly attributed to the following factors:1) Gross Profit Margin: The gross profit margin percentage declined during the current period to reach 28.2%, compared to 31.6% for the same period last year, driven by an increase in some operating cost items.2) General, Administrative, and Marketing Expenses: Total general, administrative, and marketing expenses for the current period increased by 16.62 million Saudi Riyals to reach 67.31 million Saudi Riyals (compared to 50.69 million Saudi Riyals for the same period last year). This was primarily due to the marketing campaign and promotional costs associated with the launch of Al Hammadi Hospitals Group’s new brand identity.3) Other Income: A decrease in other income by 2.86 million Saudi Riyals compared to the same period of the previous year.4) Finance Income and Finance Costs: Finance income for the current period declined by 3.09 million Saudi Riyals, while finance costs increased by 2.83 million Saudi Riyals to reach 15.20 million Saudi Riyals (compared to 12.37 million Saudi Riyals for the same period last year). This was a result of the accelerated construction works for the Al Olaya Al Hammadi Hospital branch and the management of liquidity and borrowings to ensure the smooth continuity of both operational and construction activities. |
| Statement of the type of external auditor’s report | Unmodified conclusion |
| Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) | None |
| Reclassification of Comparison Items | None |
| Additional Information | None |
