‎“Care” profits jumped 87.5% during Q1, to SR56.3 mln

National Medical Care Co. revealed an increase in net profit after zakat and tax in the first quarter to 56.3 million riyals, compared to 29.9 million riyals in the same quarter of last year, at a rate of 87.5%. This came after today’s announcement of the preliminary financial results for the period ending in 2023- 03-31 (three months).

The operational profit amounted to 63.4 million riyals in the first quarter, compared to 37 million riyals in the same quarter of the previous year, an increase of 71.3%.

The total shareholders’ equity “without minority rights” amounted to 1.31 billion riyals in the current period, compared to 1.15 billion riyals in the same period last year, an increase of 14.3%.

Earnings per share in the current period reached 1.25 riyals, compared to 0.67 riyals in the same period last year.

– Net profit during the current quarter amounted to 56.3 million Saudi riyals, compared to 29.9 million riyals for the similar quarter ending on March 31, 2022. The 88% increase in net profit is attributed to the following factors:

– Net revenue for the current quarter improved by 23.6% (SAR 261.4 million) as a result of the increase in the volume of business from the Ministry of Health and the General Organization for Social Insurance, which led to an increase in the number of inpatients and surgeries. The Ministry of Health bills also increased due to the fact that Reaya Hospitals obtained HIMSS (Health Information Management System) accreditation.

Reduction in cost of revenue as a percentage of revenue

– The gross profit margin increased by 34.4% compared to 29.1% for the same quarter of the previous year, due to the decrease in costs and the increase in business volume from the Ministry of Health and the General Organization for Social Insurance.

– Decrease in expenses compared to provisions for expected credit losses

– Increase other revenues

The aforementioned gains were partially affected by the following:

Increased general and administrative expenses

The net profit margin increased from 14.2% in the previous quarter of last year to 21.5% in 2023.

– Net profit increased during the current quarter to 56.3 million Saudi riyals, compared to 55.4 million Saudi riyals for the quarter ending on December 31, 2022 AD. The increase rate, which amounted to 2% in net profit, is attributed to the following factors:

– An increase in revenues by 4% as a result of the increase in business volume from the Ministry of Health and the General Organization for Social Insurance.

Reduction in cost of revenue as a percentage of revenue

– Lower selling and marketing expenses

– Increase other revenues

The aforementioned gains and margins were partially affected by the following:

Increased general and administrative expenses

The increase in zakat expense for the current quarter

The net profit margin for the current quarter increased to 34.4%, compared to 31.3% in the previous quarter ending on December 31, 2022, due to the decrease in the cost of revenue as a percentage of revenue.