Care Profits Increased to SR33.17 mln during the 3Q by 103%

The National Medical Care Company “Care” net profit after zakat and tax increased to SR33.17 million during the third quarter, compared to SR16.32 million during the same quarter of the previous year, at a rate of 103.22%.

This came after National Medical Care Company announced on Tuesday its interim financial results for the period ending on 2021-09-30 (nine months).

The operational profit amounted to SR39.79 million during the third quarter, compared to SR22.69 million during the same quarter of the previous year, a growth of 75.32%.

The gross profit amounted to SR63.08 million during the third quarter, compared to SR51.06 million during the same quarter of the previous year, a decrease of 23.54%.

The net profit after zakat and tax during the current period amounted to SR99.6 million, compared to SR75.27 million during the same period of the previous year, an increase of 32.38%.

Profits per share during the current period amounted to SR2.22, compared to SR1.68 during the same period of the previous year.

Net profit for the quarter increased by 103% to SR 33.2 million compared to SR 16.3 million for similar quarter of previous year. The increase in net profit is attributed to the following factors:  Lower cost of sale expenses relative to current quarter revenue resulting in gross profit margin improving to 30% from 24% in the similar quarter last year.  Reduced operating expenses in the current quarter vs similar quarter of previous year due to provisions for old receivables from government entities recorded in the previous year.

Net profit improved by 8% during the current quarter compared to previous quarter. The reasons for such improvement are highlighted below: Revenue improved by 5% vs last quarter, due to increased admissions and surgeries, increased gross profit margin due to lower cost of sale as a percentage of revenue in the current quarter, higher other income in the current quarter.

Net profit for the current period improved by 32% when compared with similar period of the previous year mainly due to the following reasons, increased volume of business with insurance, GOSI, cash patients and direct contracts, gross margin improvement due to higher absorption of overheads and reduction in cost of sale to revenue ratio, and reduced operating expenses in the current period vs similar period last year due to provisions recognised in the previous year against old receivables from government entities.

The above gains were impacted by the following, higher general and administrative expenses, reduction in rental and investment income, higher zakat charge for the period due to increase in zakat base of the Company

Items, elements and notes of the comparatives Condensed Interim Financial Statements have been redisplayed, regrouped and reclassified to meet with the applied accounting policies for the current period, which have been prepared according to the International Financial Reporting Standards (IFRS) that are endorsed in the Kingdom of Saudi Arabia.