Care Profits Fell to SR30 mln during 1Q, down 16%

The net profit after zakat and tax for the National Medical Care Company decreased to SR30 million during the first quarter, compared to SR36 million during the same quarter of the previous year by 16%.

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

The operational profit amounted to SR35 million during the first quarter, compared to SR42 million during the same quarter of the previous year, down 17%.

The gross profit amounted to SR61 million during the first quarter, compared to SR64 million during the same quarter of the previous year, down 3%.

Profits per share during the current period amounted to SR0.67, compared to SR0.8 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:

The net profit for the current quarter decreased to SR 29.9 million compared to SR 35.7 million for the quarter ended 31 March 2021. The 16% decrease in net profit is attributed to the following factors;

– Net revenue for the current quarter decreased by 1.3% (SR 211.5 million) due to reduced referrals from Ministry of Health and GOSI.

– Gross profit margin decreased to 29.1% vs 29.7% similar quarter last year due to reduction in higher margin business from MOH and GOSI.

– Increased selling & marketing and general & administrative expenses.

Net profit margin for the quarter is at 14.2%.

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

The net profit for the current quarter reduced to SR 29.9 million compared to SR 32.5 million for the quarter ended 31 December 2021. The 8% decrease in net profit is attributed to the following factors;

– Net revenue decreased by 2% due to reduced referrals from Ministry of Health and GOSI.

– Increased general and administrative costs.

– Higher zakat charge for the quarter.

– The lower revenue and higher costs were partially offset by lower selling & marketing expenses.

GP margin improved during the quarter due to lower cost of services as a percentage of revenue.

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. For more information, please refer to note 3 in the condensed Interim Financial Statements for the period ended 31 March 2022.

Subsequent to quarter end, the Company received payments amounting to SR 86 million from GOSI for prior period