Aldawaa profits Increase to SR87 mln during 1Q, by 10%

The net profit after zakat and tax for Aldawaa Medical Services Company grew to SR87 mln during the first quarter, compared to SR79 million during the same quarter of the previous year, at a rate of 10%.

This came after Aldawaa Medical Services announcement on Thursday the consolidated preliminary financial results for the period ending on 31.03.2022 (three months).

As for the operational profit, it amounted to SR71 million during the first quarter, compared to SR74 million during the same quarter of the previous year, a decrease of 5%.

The gross profit amounted to SR494 million during the first quarter, compared to SR452 million during the same quarter of the previous year, an increase of 9%.

Profits per share during the current period amounted to SR1.02, compared to SR0.93 during the same period of the previous 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:

1- Revenues: The Company’s revenues have increased in the first quarter of 2022 in the amount of SR85.1 million at a rate of 7% in comparison to the same period of the prior year 2021, which means that the company has sustained its revenue growth compared to the same period of the prior year whose revenues were high due to the Covid-19 pandemic. This growth is mainly due to the increase of 22.2% in the Wasfaty Program sales (with MOH), and an increase of22.4% in insurance companies’ sales in comparison to the same period of the prior year 2021.

2- Gross Profit: The gross profit has increased 9.3% with an amount of SR 42.2 million in comparison to the first quarter in 2021, due to the enhancement in Gross Profit % from 37.4% in the same period of the prior year 2021 to 38.1%

3- Operational income: The operating income for the year 2022 has decreased to the amount of SR3.6 Million at a rate of 4.9% in comparison to the same period of the prior year due to the increase in selling and distribution expenses due to the opening of new branches most of them were during the 4th quarter of the year 2021, and the financial effect of these openings will reflect during the year 2022.

4- Net profit: The net profit has increased in the first quarter of 2022 by 10.5% with an amount of SR8.3 million in comparison to the same period of the prior year 2021, due to the increase in sales.

The reason of the increase (decrease) in the net profit during the current quarter compared to the previous period of the current year is:

1- Revenues: The Company’s revenues have decreased in the first quarter of 2022 by 0.27% in comparison to the last quarter of the prior year 2021 as a result of closing a number of branches in preparation for transferring them to other locations.

2- Gross Profit: The gross profit for the first quarter of the current year has decreased by SR38 million mainly due to the increase in revenue in the last quarter of the prior year 2021 which resulted from commercial income and income from services provided to suppliers that are settled at year-end.

3- Operational income: The operating income for the year 2022 has decreased by SR3.5 Million at a rate of 4.7% in comparison to the last quarter of the prior year 2021 due to the increase in selling and distribution expenses due to the opening of new branches most of them were during the 4th quarter of the year 2021.

4- Net profit: The net profit has increased in the first quarter of 2022 by 26% in comparison to the last quarter of the prior year 2021 mainly due to the increase in fair value gain on SWAP derivatives Liabilities.