Nahdi: 2Q26 First Take: Earnings decline as expected amid ongoing investment

Research evidence excerpt

Nahdi: 2Q26 First Take: Earnings decline as expected amid ongoing investment

J P M O R G A N CEEMEA Equity Research

29 July 2026

Nahdi Neutral

4164.SE, NAHDI AB

2Q26 First Take: Earnings decline as expected amidst Price (28 Jul 26):SRls94.00

ongoing investment Price Target (Dec-27):SRls100.00

Our Take: Nahdi reported in-line 2Q26 results with decent sales momentum CEEMEA Consumer

ACdriven by ongoing gross margin and opex investment, leading to a 6% y/y drop in Elena Jouronova, CFA

EBIT and a 10% drop in net earnings. We expect little market excitement post the (971) 4561-2010

print as it underscores a persistently tough consumer and competitive backdrop in elena.jouronova@jpmorgan.com

the Saudi pharma retail space, and see management’s FY26 profit guidance at risk Nishchay Mehta

considering the soft delivery in 1H26. (971) 4561-2001

nishchay.mehta@jpmchase.com

• Noteworthy Areas: 1) Nahdi’s 2Q26 sales grew 5.8 y/y, driven by 4.1% retail J.P. Morgan Securities plc

growth and 37% growth in the clinics business, which was broadly in line with

1Q26 trends. 2) Gross margin declined 54bps y/y to 37.7%, which the company

attributed to a mix shift toward online and healthcare. We also see potential

pressure from the evolving retail mix as Wasfaty scales. 3) EBIT fell 5.7% y/y,

with margin down 112bps y/y, reflecting GM compression and higher opex/

sales as Nahdi invests in healthcare expansion and technology capabilities. 4)

Net profit declined 9.7% y/y to SAR 215m.

• Likely changes to consensus: Bloomberg consensus implies FY26 revenue/

EBIT/net profit growth of 8%/4%/1%, in line with management guidance of

6-8% top-line growth and 1-2% bottom-line growth. With 1H26 earnings

down 9% y/y, we expect there will be questions over management’s profit

guidance for the year.