Al Hammadi records profit surge of 74% to SR62 mln in 1Q

Al Hammadi Company for Development and Investment announced that its profits after zakat and tax rose 74% to SR 62 million in the first quarter of 2022 compared to 36 million during the same period of 2021.

This came after Al Hammadi announcement on Thursday of the preliminary financial results for the period ending on 31.03.2022 (three months).

The company’s operational profit jumped 214% to SR 70 million in the 1^st quarter of the current year from SR 36 million in the same period of the previous year.

Gross profit of Al Hammadi soared 10% to SR 96 million in the first quarter of this year from SR 87 million a year ago, while the profit per share climbed to SR 0.52 from SR 0.3.

The net profit for the current quarter has increased by 74.34% to reach 61.96 million Saudi riyals, compared to the net profit for the same quarter of the previous year amounted to 35.54 million Saudi riyals, with an increase in the net profit margin ratio for the current quarter to 24.7% compared to 15.71% for the same quarter of the previous year. The increase in net profit is due to the following: 1. The increase in revenues of medical services segment of Al Hammadi Nuzha and Suwaidi branch hospitals resulted from the increase in the number of outpatients and inpatients compared with the same quarter last year where the growth rate in revenues for the current quarter compared to the same quarter of the previous year reached 10.87%. 2. The decrease in the provision for credit losses added during the current quarter compared to the provision added during the same quarter last year based on the updated data related to the amounts expected to be recovered and used in the model for calculating expected credit losses in accordance with the requirements of IFRS No. (9). “

The net profit of the current quarter has increased compared to the previous quarter due to the following: 1. The increase in the provision for credit losses added during the previous quarter compared to the provision added during the current quarter based on the updated data related to the amounts expected to be recovered and used in the model for calculating expected credit losses in accordance with the requirements of IFRS No. (9). 2. The impairment losses of year-end valuation for goodwill resulting from the acquisition of a subsidiary in previous years during the previous quarter amounted (9.7) million Saudi riyals.

The comparative figures for the financial statements for the first and fourth quarters of 2021 have been presented in line with the reclassification of the financial statements referred to in Note No. (38) in the audited financial statements for the year ended December 31, 2021 and Note No. (18) in the condensed consolidated interim financial statements for the period ended March 31, 2022.