Care H1 2024 profit up 45% to SAR 150.8M; Q2 at SAR 69.5M

National Medical Care Co. reported a net profit of SAR 150.8 million for H1 2024, up 45% compared to SAR 104.1 million in the prior-year period.

The profit increase is driven by a higher volume of business from the General Organization for Social Insurance (GOSI), Ministry of Health, insurance, and direct contracts, resulting in higher inpatient and outpatient revenue.

There was a 3% year-on-year (YoY) growth in total patient count.

The company also reported revenue growth, which was supported by the integration of new facilities acquired after the end of the period.

Meanwhile, the lower cost of sales to revenue ratio, resulted in improved costs absorption.

Gross profit improved by 28%, due to higher revenue and lower cost-of-sale margin, resulting in a gross profit margin of 36.7% versus 33.8% in the similar period last year.

Care registered higher other income and favorable Zakat expenses due to final assessments issued for 2019-2020. The assessments were finalized as the appellate process was completed and decisions was in favor of the company, resulting in reversal of provisions made in previous years.

The above gains were partially offset by higher marketing expenses due to strong digital media marketing campaigns to improve market presence and reach a larger audience and increased costs of expected credit loss provisions due to adjusted economic indicators and slower recovery rates in the current period.

The profit was also offset by higher general and administrative expenses and lower finance income due to lower daily average deposits.

The company’s Q2 2024 net profit rose 45% to SAR 69.50 million from SAR 47.80 million a year earlier.

On a sequential basis, Q2 net profit fell 14.5% from SAR 81.29 million.

Total shareholders’ equity, no minority interest, stood at SAR 1.50 billion by the end of H1 2024, up from SAR 1.32 billion in the year-earlier period.

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