Sunday, 16 June 2024

Al Hammadi’s Q1 Profits Plunge by 21%, Down to SAR 64 Million

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Al Hammadi Holding Company reports a significant downturn in profits. Net earnings plummeted to SAR 64 million in Q1 2024, marking a stark 21% decline from the same period last year. Operating at a loss of SAR 75 million, the company faces an 18% decrease compared to the previous year.

This came after today’s announcement of the preliminary financial results for the period ending on March 31, 2024 (3 months).

The operating loss amounted to 75 million riyals in the first quarter, compared to a loss of 92 million riyals in the same quarter of the previous year, a decrease of 18%.

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Earnings per share in the current period amounted to 0.4 riyals, compared to 0.51 riyals in the same period last year.

Revenues declined 7.2% to SAR 277.04 million in Q1 2024, down from SAR 298.6 million in Q1 2023, due to the anticipated slowdown in patient traffic associated with the holy month of Ramadan and spring break vacations.

Net profit recorded SAR 64.04 million in Q1 2024, down 21.3% from SAR 81.42 million booked during the same period last year. Lower net profitability was mainly driven by the following:

1) Lower revenue which declined 7.2% from the same quarter a year ago.

2) Higher costs, on the back of the increase in medical staff costs owing to annual raises and new hires to staff Al Hammadi’s capacity expansions and new service offerings.

Revenues declined 8.8% to SAR 277.04 million in Q1 2024, from SAR 303.68 million in Q4 2023. This was primarily driven by lower volumes across both inpatient and outpatient segments owing to an anticipated seasonal slowdown.

Net profit marginally declined 1.8% to SAR 64.04 million compared to SAR 65.19 million in Q4 2023.This decline is attributed to an 8.8% decline in revenues for the current quarter compared to the previous quarter.

Net profit marginally declined 1.8% to SAR 64.04 million compared to SAR 65.19 million in Q4 2023.This decline is attributed to an 8.8% decline in revenues for the current quarter compared to the previous quarter.

As indicated in note (22) of the condensed consolidated interim financial statements, some comparative figures have been reclassified to conform with the presentation for the current period, to enhance the comparability of information and to make it more relevant to users of the condensed consolidated interim financial statements.

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