Dallah Healthcare says 55% of Q1 profit driven by business growth, improved performance

Tarek Othman Al-Kasabi, Chairman of Dallah Healthcare Co.

Tarek Othman Al-Kasabi, Chairman of Dallah Healthcare Co., said that the profit growth in the first quarter of 2024 was mainly driven by the strategy that was developed three years ago, including a huge and ambitious growth plan.

More than 55% of profit came thanks to the growth of the company’s business and improved performance, while the remaining 45% was due to recording lower investment losses from Mohammed Al-Faqih Hospital and the International Medical Center, which began to bear fruit and strengthen the company’s role and financial position. This is in addition to enhancing the credibility of the company's strategy from growth to acquiring existing hospitals, He revealed in an interview on CNBC Arabia.

Al-Kasabi also explained that Dallah Healthcare's strategy focuses on the Riyadh region, as it is the largest region and market for services, saying that work is underway to expand there. He noted that the company is negotiating over acquisitions in the Eastern Province and a final agreement will be announced soon.

He stated that the company is continuing to expand its existing hospitals, which will boost efficiency and profitability, indicating that the acquisitions it makes are either in cash, share swap, or both.

The company is taking steady steps and all of its hospitals are witnessing growth, said the top executive, pointing out that Makkah Medical Center has seen growth by more than 70% and may reach 100% in 2024, with the growth of the Kingdom Hospital and the rise in the profit of the International Medical Center.

According to data available on Argaam, Dallah Healthcare posted a 26% rise in net profit for Q1 2024 to SAR 119.3 million, compared to SAR 94.7 million in Q1 2023.