Al-Hammadi profits jumped 186% by the end of 2022, to SR257 ‎mln

The net profit after zakat and tax for Al-Hammadi Holding Company jumped during the year 2022 to 257 million riyals, compared to 90 million riyals in 2021, by 186%. This came after today’s announcement of the annual financial results ending on 12-31-2022.

The operational profit amounted to 292 million riyals during the current year, compared to 131 million riyals in the previous year, with a growth of 122%.

As for gross profit, it amounted to 416 million riyals in the current year, compared to 364 million riyals in the previous year, an increase of 14%.

Earnings per share in the current year reached 1.61 riyals, compared to 0.56 riyals in the previous year.

The company’s net profit increased at an annual rate of 185.65%, to record 257.34 million Saudi riyals in 2022, compared to 90.09 million Saudi riyals in 2021. The increase in net profit is mainly due to the following factors:

Revenue growth of 17.91% during 2022 compared to the previous year, supported by strong growth in the medical services and pharmaceutical products sectors, at an annual rate of 18.00% and 17.60%, respectively. The growth in the medical services sector is due to the increase in the number of auditors during 2022 compared to 2021.

The provision for expected credit losses decreased by 64.82% to 54.34 million Saudi riyals during the year 2022, compared to 154.47 million Saudi riyals during the year 2021, as this reflects the updating of data related to the amounts expected to be recovered and using them in the model to calculate expected credit losses according to requirements of the International Financial Reporting Standard No. (9).

The losses resulting from the cessation of the operational activities of Al Hammadi Olaya Hospital during the previous year (fiscal year 2021) amounted to 8.78 million Saudi riyals, as the hospital was closed temporarily, until a new hospital is established to replace it.

The company said that some comparative figures have been reclassified to conform to the presentation in the current year, and to enhance the comparability of information and to be more appropriate for users of the consolidated financial statements.