Combined profit of Saudi healthcare firms up 4% in H1

The aggregate net profit of five Tadawul-listed healthcare firms grew by 4 percent year-on-year (YoY) to SAR 561.8 million in H1-2016, data compiled by Argaam showed.

The data included earnings from Dallah Healthcare Holding, Mouwasat Medical Services, National Medical Care Co. (Care), Al Hammadi Company for Development and Investment, and Middle East Healthcare Co. (MEAHCO).

Aggregate sales revenue also jumped 14 percent YoY to SAR 2.8 billion. The gross profit margin rose 0.2 percent YoY in the same period.

Meanwhile, operating expenses increased by nearly 21 percent YoY to SAR 637.1 million. 

All five companies witnessed an increase in operating expense during the first half. Al Hammadi reported the biggest cost rise of 76 percent YoY to SAR 58 million, which was due to the operation of Hospital Al-Suwaidi following the closure of its Al-Olaya branch in Q1.

MEAHCO contributed the largest share to sector earnings, with its net profit accounting for 32 percent of combined profit.

In terms of profit growth, Dallah came on top with a 35 percent leap YoY to SAR 113 million.

National Medical Care Co. (Care) followed with a 30 percent YoY jump in net profit, supported by modified contractual terms with Saudi Arabia’s General Organization for Social Insurance (GOSI).

In addition, the hospital segment, which is comprised of outpatient clinics and the admission unit, dominated 81 percent of the companies’ aggregate revenue. All sector players reported growth in this segment during the first half, the data added.