Pharmacy business strategic pillar, expansion to remain selective: BinDawood CEO

He added that the segment’s core operations remained resilient, supported by growth in sales outside the program, which generate higher profit margins and helped improve the quality of the segment’s earnings.

BinDawood said the group views the pharmacy business not merely as a network of branches, but as an integrated platform for growth in the healthcare sector, which offers promising long-term opportunities. During H1 2026, the group opened eight new branches, bringing the Zahrat Al Rawdah Pharmacies network to more than 209 pharmacies across Saudi Arabia.

He pointed out that the group will continue to expand in a disciplined and selective manner, with its growth plans extending beyond increasing the number of branches to include improving pharmacy productivity, enhancing customer experience, developing loyalty programs, and expanding value-added products and services.

Regarding Q2 2026 results, BinDawood said double-digit revenue growth alongside faster operating profit growth reflected improved operating efficiency and the quality of growth. He attributed the faster pace of operating profit growth to several factors, mainly the growth of the retail business, measured expansion of the store network, and the full contribution from branches opened in late 2025.

He also highlighted the growing contribution of the group’s other businesses, including Toy Triangle Co., as well as improved performance in the IT sector, particularly Icon, in addition to the initial contribution from Vaza Foods.

BinDawood said the group continued to focus on disciplined expense management and improving operating efficiency, and despite costs associated with expansion and integrating acquired companies, it succeeded in improving the operating expense-to-sales ratio across several segments, particularly retail and IT.

He said this enhanced the group’s ability to convert each additional riyal of revenue growth into operating profit more efficiently, adding that the improvement reflects the strength of the company’s business model and its ability to achieve operating leverage and translate business growth into faster profit growth.

Meanwhile, BinDawood noted that gross profit margin came under some pressure during Q2 due to several factors, including higher external costs and changes in the sales mix. However, he said the group managed to absorb a significant portion of these pressures through improved operating efficiency, disciplined expense management, and enhancements to its operations and supply chain.

Regarding the increase in the share of non-controlling interests, BinDawood said the rise was mainly attributable to improved performance and profitability at several subsidiaries in which BinDawood Holding does not own 100% of the capital.

He added that the increase in this share alongside profit growth reflects positive developments in the performance of these companies and the group’s success in building a diversified portfolio capable of creating value.

Profits generated by these companies are distributed between BinDawood Holding and other shareholders according to their respective ownership stakes, the CEO said, emphasizing that the group’s priority is to grow the overall economic value generated by these investments while continuing to develop them and maximize their contribution to the group’s profits and long-term value.