Saudi German Health results seen to keep improving at same pace: CFO

Middle East Healthcare Co.’s (Saudi German Health) performance and results are expected to continue to improve at the same pace during the coming period, CFO Madani Hozaien told Argaam in a call.

Commenting on Q2 2023 financials, he added that the company continued to boost its operational efficiency for the third straight quarter, although the second quarter coincided with the holy month of Ramadan as well as Eid Al-Fitr and Eid Al-Adha holidays, which resulted in slower business from inpatients and outpatients during the period.

He explained that operating rates were more stable compared to Q1 2023, despite the increase in capacity resulting from new branches. Further, all branches, including new ones, recorded higher revenues.

The number of outpatients leapt by 12%, while the number of inpatients increased by 26%, continuing the same march.

Hozaien also stated that the company decided to suspend working on the capital increase file. Meanwhile, the board of directors plans to call for an extraordinary general meeting to approve a sukuk issuance aimed at restructuring debts.

The CFO pointed out that the upcoming expansion of Saudi German Hospital Jeddah will be financed through a long-term loan.

According to Argaam data, Saudi German Health’s net profit rose to SAR 90.4 million in H1 2023, from SAR 30.9 million during the same period of 2022. Further, Q2 2023 net profit amounted to SAR 40.3 million, compared to SAR 10.4 million in Q2 2022.