Almujtama Alraida approves new 5-year strategy

Almujtama Alraida Medical Co. adopted a new five-year strategy, aimed at achieving sustainable revenue growth and profitability, according to a Tadawul statement.

The strategy is built around a focused transformation plan designed to enhance the company’s core business operations.

The transformation plan is based on three primary pillars.

The first pillar focuses on increasing the volume of domestic and foreign investments by expanding private brands and enhancing profit margins. This includes the expansion of the company's private-label product range and entering into exclusive agreements to distribute premium products, which improves the competitive advantage and increases profit margins.

The company will focus on expansion with government and semi-government entities by increasing the market share of medical services for various government entities and National Unified Procurement Co. (NUPCO) through integration with the " Wasfati" and "Yusr" systems, achieving one of the goals of the Kingdom's Vision 2030.

Another key component is the in-branch clinics initiative, which involves partnering with specialized companies to establish medical clinics within pharmacy branches, offering primary and specialized medical services. This enhances the value of the service provided to customers, increases the number of visits, and generates additional revenues for the company.

Moreover, the company will focus on expanding the customer base by opening new branches in various cities across the Kingdom, marketing the brand at all levels, and developing existing branches.

The second pillar is based on development and specialization. The company will focus on digital sales and customer loyalty programs by developing the online store and improving logistics partnerships, in addition to launching an advanced loyalty program and customer relationship management system to enhance digital sales and increase repeat purchases.

The company will also develop and automate supply chain operations by automating ordering and supply processes, and improve operational efficiency by utilizing available storage space in its warehouses and branches.

The third pillar will target strengthening and developing human resources. This includes developing specialized human resources, particularly Saudi pharmacists, and restructuring the administrative organization to align with improved governance and increased operational efficiency.

Almujtama Alraida emphasized that the new strategy aims to drive revenue growth and is expected to increase the operating profit margin.

Furthermore, the plans are designed to enhance the company’s market value and generate long-term, sustainable benefits for all stakeholders. This includes maximizing shareholder returns over the long term, contributing to local economic growth through expansion and job creation, delivering advanced healthcare services that enhance the customer experience, and supporting national cadres while raising the efficiency of the private healthcare sector.

The company is currently preparing detailed implementation plans, with actual execution scheduled to begin in Q3 2025, the statement said.

Any developments or major milestones related to the implementation of this strategy will be announced in due course.