Equipment House CEO says subsidiaries' net profit up SAR 18M in Q2

Faisal Al Atawi, CEO of Scientific and Medical Equipment House Co. (Equipment House)

Faisal Al Atawi, CEO of Scientific and Medical Equipment House Co. (Equipment House), said the performance of the subsidiaries improved significantly, with their net profit increasing by SAR 18 million in Q2 2025 compared to the same period in 2024.

In an interview with Argaam, Al Atawi added that the increase in net income was driven by higher sales of medical devices, equipment, and pharmaceuticals at the subsidiaries. This is in addition to lower operating losses following the completion of the sale of Naqaa United Pharmaceutical Co., a subsidiary of Girgas Trading Company & Drug Store before the end of Q3 2024.

He added that the most profitable segments for the company in Q2 2025 included Roaa Al-Himayah, which reported earnings of nearly SAR 10.7 million, along with increased earnings of Girgas Trading, as well as higher profits from the operations, contracting, and medical devices and equipment sales segments.

Regarding the financial performance, the CEO said net profit rose in the current quarter by SAR 4.5 million, or 61.4% compared to the same period last year, driven by higher net profits from Roaa Al-Himayah and Girgas Trading.

He added that total revenues in Q2 amounted to SAR 272 million, up SAR 56.6 million, or 26.3%, compared to the same period last year.

The increase, Al Atawi explained, was mainly due to higher revenues from the medical devices and equipment sales segment, in addition to higher overall sales from the subsidiaries during the same period, and increased sales of medical devices, equipment, pharmaceuticals, and food products at the company and its subsidiaries.

When asked about the decline in operating income, he clarified — as mentioned in the announcement — that the gross profit margin fell by 2%, and operating income for the quarter decreased due to a lower overall gross margin from projects, as some operational projects reached completion and new projects began.

This required creating certain provisions related to operational projects to cover any potential costs from project handovers and receptions. According to the operational plan, profit margins are expected to improve in H2 2025.

Al Atawi also expected revenue growth, linked to the company’s segments and subsidiaries, along with an increase in other diversified revenues.