Care’s topline growth driven by new acquisitions: CEO

The recent acquisitions and expansions are in line with the company’s strategy to expand its presence in the healthcare sector and diversify revenue sources across key regions and services, he added.

The company acquired Al-Balad facility in Q4 2023, while Al-Haram facility began operating during the same period, both contributing to 9% of revenues until September 2024.

It also acquired last October Al-Salam Hospital, featuring a capacity of 100 beds, which will be consolidated starting from Q4 2024, the CEO stated.

He pointed to the pilot launch of a facility dedicated to mental health this month, as a significant step towards diversifying the company’s services. This facility is pivotal in Care’s commitment to meeting the growing demand for specialized mental health care in the Kingdom, aligning with its efforts to meet advanced healthcare needs.

According to the CEO, Care’s financial results for Q3 2023 witnessed higher net profits as a result of reversing provisions for expected credit losses due to the collection of debts related to previous years, besides some settlements with insurance companies, driving improved collections.

However, in Q3 2024, collections were lower, hence incurring net expenses for the current quarter instead of a net reversal in the prior-year period.

He added that there was an increase in general and administrative expenses due to the addition of new facilities. This was paired with a decline in income from deposits and an increase in financing costs as a result of securing bank facilities to finance acquisitions.

The number of outpatient visits during the first nine months of 2024 totaled about 489,000, while the total number of inpatient admissions reached more than 15,000 cases.

In Q3 2024, the overall number of outpatient visits amounted to about 171,000 and the number of inpatient admissions was 5,372, according to the top executive.

As for his outlook on the company's performance in Q4 2024, Al-Obaid explained that based on the policy followed, the company currently cannot determine any guidance regarding future periods.

According to data available with Argaam, Care reported a net profit of SAR 211 million for the first nine months of 2024, an increase of 19% from SAR 177.4 million in the year-earlier period. Meanwhile, Q3 2024 net profit dropped 18% from SAR 73.38 million in Q3 2023 to SAR 60.2 million.