Care profits up 37% to SR42 mln in Q2

The net profit before zakat of Astra Industrial Group rose in the second quarter to SR42 million, compared to SR31 million in the same quarter of last year, by 37%.

This came after the announcement on Thursday of the preliminary financial results for the period ending on 30.06.2022 (six months).

The operational profit amounted to SR 46 million in the second quarter, compared to SR 38 million in the same quarter of the last year, up 22%.

The gross profit in the second quarter amounted to SR67 million, compared to SR58 million in the same quarter of the last year, up 16%.

The net profit before zakat in the current period amounted to SR72 million, compared to SR66 million in the same period last year, an increase of 8%.

Profits per share in the current period reached SR 1.61, compared to SR1.48 in the same period last year.

Net profit for the quarter improved by 37% to SR 42 million compared to SR 31 million for similar quarter of previous year. The increase in net profit is attributed to the following factors.

– Net revenue for the current quarter improved by 7% (SR 216 million) due to increased referrals from GOSI and improved business with insurance, cash and direct contracts segments, resulting in higher patient visits.

– Gross profit margin improved to 31% vs 29% for similar quarter of last year due to increased higher margin business from GOSI and lower cost of sale expenses due to controlled consumption of direct costs.

– Lower provisions for expected credit losses.

– Increased other income.

The increase in net profit due to the above factors was partially offset by the following.

– Higher sales and marketing expenses.

– Increased general and administrative costs.

Net profit margin for the quarter is at 19%.

Net profit improved by 40% during the current quarter compared to previous quarter. The reasons for the improvement are highlighted below.

– Higher revenue due to increased referrals from GOSI and improved business with insurance, cash and direct contracts, resulting in higher patient visits.

– Gross profit improved by 9% during the quarter due to lower cost of services as a percentage of revenue.

– Lower provisions for expected credit losses.

– Higher other income.

The increase in net profit due to the above factors was partially offset by the following.

– Higher sales and marketing expenses.

– Increased general and administrative costs.

Net profit for the current period improved by 8% when compared with similar period of the previous year mainly due to the following reasons.

– Revenue for the period improved by 3% due to higher volume of business and increased patient visits including admissions and surgeries.

– Gross profit improved by 6% due to lower cost of sale expenses as percentage of revenue.

– Higher other income.

– Reduced zakat charge for the period.

The above gains were impacted by the following.

– Higher sales and marketing expenses.

– Increased provisions for expected credit losses.

– Higher general and administrative costs.