‎“Care” profits increased to SR47.7 million during Q2, by 13.7%‎

National Medical Care Company revealed an increase in net profit after zakat and tax in the second quarter to 47.7 million riyals, compared to 42 million riyals in the same quarter of last year, at a rate of 13.75. This came after today’s announcement of the preliminary financial results for the period ending in 2023-06. -30 (six months).

The operating profit amounted to 57.3 million riyals in the second quarter, compared to 50 million riyals in the same quarter of the previous year, an increase of 14.7%.

The net profit after zakat and tax during the 6-month period amounted to 104 million riyals, compared to 72 million riyals in the same period last year, with a growth of 44.5%.

And the total shareholders’ equity “without minority rights” amounted to 1.32 billion riyals in the current period, compared to 1.15 billion riyals in the same period last year, an increase of 14.8%.

Earnings per share in the current period reached 2.32 riyals, compared to 1.61 riyals in the same period last year.

– Net profit increased during the current quarter by 14% to reach 48 million Saudi riyals, compared to 42 million Saudi riyals for the same quarter of the previous year. The reason for the increase in net profit is attributed to the following factors:

– Net revenue for the current quarter improved by 13% (245 million Saudi riyals) as a result of the increase in referrals from the General Organization for Social Insurance and the improvement in the volume of business with the Ministry of Health, which led to an increase in admissions and surgeries. The Ministry of Health bills also increased due to Care facilities obtain HIMSS (Healthcare Information and Management Systems Society) accreditation

– Decrease in the ratio of cost of revenues to revenues

– The gross profit margin improved to 33% compared to 31% for the same quarter of the previous year. This is due to the higher margin increase in the volume of business with the General Organization for Social Security and the decrease in the cost of revenue due to the rationalization of costs.

The aforementioned gains and margins were partially offset by the following:

– Provisions for expected credit losses witnessed a significant decrease due to large settlements with insurance companies.

Increased general and administrative expenses

– Decrease in other revenues

The net profit margin increased from 19% in the previous quarter of last year to 19.5% in 2023.

– While the net profit decreased by 15% during the current quarter compared to the previous quarter. The reasons for the decrease are:

– Revenue decreased by 6%, mainly due to the expiration of the National Guard Hospital contract and the seasonal effect on the insurance and cash sectors.

– Gross profit decreased by 10% during the current quarter due to lower revenues

– The increase in the provisions for expected credit losses due to the increase in receivables.

– Decrease in other income

An increase in zakat expenses for the current quarter

– The net profit for the current period improved by 45% (104 million Saudi riyals) compared to the same period of the previous year (72 million Saudi riyals), mainly due to the following reasons:

Revenues for the period improved by 18% due to the increase in the volume of business from the Social Insurance, the Ministry of Health and the insurance sectors, which led to an increase in admissions, surgeries and patient visits. Moreover, MOH billing had a positive impact on pricing due to HIMSS accreditation for care facilities.

Gross profit improved by 34% due to lower cost of revenue as a percentage of revenue

The increase in other revenues

The aforementioned gains were affected by:

Increased general and administrative expenses

– Increase in zakat expenses for the period