Saudi healthcare firms’ combined profit rises 6% in H1-15

Healthcare providers Dallah Holding, Mouwasat Medical Services, National Medical Care Co. (Care), and Al Hammadi saw their combined H1-2015 net profit rise six percent year-on-year to SAR 343 million.

The growth was bolstered by a 13 percent year-on-year increase in combined revenue to SAR 1.74 billion, market data compiled by Argaam showed.

Exceptional gains made by Al Hammadi and Care, which came as a result of the companies resolving debt, amounted to SAR 13 million and helped boost earnings during the period.

Excluding these gains, combined net profit would have declined two percent year-on-year in the first half.

Combined H1 Profit — Details
Change y-o-y (%)	H1 2015	H1 2014	Item
+13%	1,742.9	1,536.1	Sales
+11%	708.4	639.9	Gross income
(1%)	40.7%	41.7%	Profit margin
+14%	(349.4)	(305.2)	Operating expenses
+6%	343.6	325.5	Net income

The sector's gross profit margin (GPM) decreased to 40.7 percent in H1-2015, from 41.7 percent in the same period last year.

Operating expenses (OPEX) jumped 14 percent year-on-year to SAR 349 million, as Care and Mouwasat saw spending in this area increase by 34 percent and 18 percent, respectively.

Mouwasat outperformed its peers in a number of categories as it accounted for 31 percent and 33 percent of the sector's total revenue and profit, respectively.

Dallah, Mouwasat, and Al-Hammadi reported a GPM ranging between 41.8 percent and 49.5 percent. However, Care underperformed with 26.6 percent.

Breakdown by Company
Al-Hammadi	Care	Mouwasat	Dallah	Item
266.8	447.3	543.2	485.6	Sales
117.2	119.1	269.1	203.0	Gross income
43.9%	26.6%	49.5%	41.8%	Profit margin
(36.2)	(51.2)	(144.0)	(118.0)	Operating expenses
77.9	70.0	112.0	83.7	Net income
0.65	1.56	2.24	1.77	Earnings per share (EPS)

The hospital segment dominated 78 percent of revenue, and 82 percent of total gross income.

H1 Operating Segments
Al-Hammadi*	Care	Mouwasat	Dallah	Item	Sector
H1-2015
137.4	329.1	441.2	448.1	Revenue	Hospitals
62.2	89.2	241.6	188.8	Gross income	Hospitals
--	66.1	102.0	33.2	Revenue	Pharmacy
--	20.6	27.5	11.0	Gross income	Pharmacy
--	52.1	--	10.6	Revenue	Others
--	9.2	--	3.2	Gross income	Others
		H1-2014
129.4	266.1	394.8	388.5	Revenue	Hospitals
62.2	80.3	222.2	166.8	Gross income	Hospitals
--	63.1	93.0	29.8	Revenue	Pharmacy
--	13.8	26.2	11.8	Gross income	Pharmacy
--	32.3	--	10.5	Revenue	Others
--	5.2	--	2.8	Gross income	Others

*Al-Hammadi details only cover hospital segment

" Argaam Reports "

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