Al-Dawaa profits grew to SR48 mln during Q3, by 26%

The net profit after zakat and tax for Al-Dawaa Medical Services Company increased to SR48 million during the third quarter, compared to SR38 million in the same quarter of last year, at a rate of 26%.
This came after Wednesday’s announcement of the preliminary financial results for the period ending on September 30, 2022 (9 months).
The operational profit amounted to SR83 million in the third quarter, compared to SR51 million in the same quarter of the previous year, a growth of 63%.
As for the gross profit, it amounted to SR485 million in the third quarter, compared to sR451 million in the same quarter of the previous year, an increase of 7%.
The net profit after zakat and tax in the 9-month period amounted to SR216 million, compared to SR170 million in the same period last year, an increase of 27%.
Profits per share in the current period reached SR2.54, compared to SR2 in the same period last year.
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is:
The increase of SR 9.9 million in net profit (25.7%) in comparison to the same quarter of the prior year is due to the following:
Revenues: The Company has achieved an increase in revenues during the third quarter of the year 2022 with an amount of SR 49.4 million (4%) in comparison to the same quarter of the prior year (2021).
Gross profit: The gross profit of the third quarter of the year 2022 has reached to SR 484.9 million which is 37% margin from the net revenues, while it was SR 451.3 million (35.8% from the net revenues) in the same quarter of the prior year (2021), which makes an increase of SR 33.5 million (7.4%) from the third quarter of the year (2021).
Operational profit: The operating profit has reach to SR 82.7 million in the third quarter of the year 2022 which is 6.3% margin from net revenues, while it was SR 50.8 million (4% from the net revenues) in the same quarter of the prior year (2021), achieving an increase of SR 31.9 million (62.7%) in operating profit in comparison to the same quarter of the prior year (2021).
Net profit: The net profit margin for the third quarter of the year 2022 has reached to (3.7%), while it was (3%) in the same quarter of the prior year 2021. achieving an increase of SR 9.9 million (25.7%) in comparison to the quarter of the year (2021). The reason for this increase is mainly due to an increase in sales and in turn, increased the gross margin and operating profit for the current period.
The reason for the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is:
The reasons for the decrease in net profit is the following:
– The increase in the cost of promotions.
– The decrease in the fair value gain on swap derivatives with an amount of (SR 15.5 million) compared to the prior quarter.
The reason for the increase (decrease) in the net profit during the current period compared to the same period of the last year is:
The increase in the net profit during the current period of the year 2022 in comparison to the same period of the year 2021 is due to the following:
Revenues: The Company has achieved an increase of SR 177.9 million in revenues for nine months period ended 30 September 2022 (4.8%) higher than the same period of the prior year (2021).
Gross profit: The gross profit for the nine months period ending 30 September 2022 has reached to SR 1486 million and a margin of 38%, while it was SR 1361 million and a margin of 36.4% for the same period of the prior year (2021), making and increase of SR 124.5 million (9.2%) compared to the prior period of the year (2021).
Operational profit: The operational profit for the nine months period ended 30 September 2022 has reached SR 244 million with a margin of 6.2% from net sales, while it was SR 192 million (5.1%) for the same period of the prior year, achieving an increase of SR 51.9 million (27%) compared to the prior period of the year (2021).
Net profit: The Company has achieved a net profit of SR 215.9 million for the nine months period ended 30 September 2022 with a margin of 5.5% of net sales, compared to SR 170 million and a margin of 4.6% for the same period of the year 2021, achieving an increase of SR 45.9 million (27%) compared to the same period in the year 2021. The reason is mainly due to the increase in sales which led to an increase in the gross profit and operating profit for the current period.