Dallah Healthcare profits jump 31% to reach 471 million riyals during 2024

After announcing exceptional financial results for the fiscal year ending December 31, 2024, Eng. Tariq Al-Qasabi, Chairman of the Board of Directors of Dallah Healthcare Company, stated that the company’s performance during 2024 continues the growth path that is always based on the commitment to providing high-quality healthcare services to patients and achieving value for shareholders, noting that the compound annual growth rate of the group’s revenues during the last five years amounted to 25%, which clearly reflects the success of strategic expansion plans and continuous investments in advanced medical technologies, in addition to the company’s ability to keep pace with the growing needs in the healthcare sector.

Eng. Al-Qasabi confirmed that the year 2024 witnessed strong growth across various financial indicators, supported by the company’s business expansion, its keenness to enhance performance efficiency, and the continuous growth in the number of auditors and market share, noting that revenues increased by 9%, gross profit by 12%, and net profit by 31% compared to 2023. Eng. Al-Qasabi added that one of the positive indicators achieved by the company at the year level is that cash flows from operations reached 678 million riyals, compared to 625 million riyals last year, which is sufficient to finance asset additions, dividend distributions, repay financing burdens, and achieve a surplus. The company announced a 9% growth in revenues during the fiscal year 2024, reaching SAR 3,206 million compared to SAR 2,943 million in the previous year, driven by increased operational capacity, enhanced performance efficiency, and the continued growth in the number of visitors to the company’s hospitals, as the number of visitors increased by 4% at the level of visitors to outpatient clinics and emergency departments, and by 3% at the level of hospitalized patients, and the company now receives more than 2.8 million visits to its hospitals annually. The factors that contributed to the increase in the company’s annual revenues include the continued growth in providing advanced medical procedures in the group’s hospitals. Positive contributions also came from the opening of the Dallah Namar Hospital expansion project in 2024, which includes a building dedicated to clinics that includes 150 clinics of various specialties, in addition to the opening of Dallah Clinics in the Yarmouk neighborhood in Riyadh, and the growth in the number of visits and hospitalizations at the Makkah Medical Center as a result of the increased demand for health services in the Makkah Al-Mukarramah region, especially during the Hajj and Umrah seasons. Gross profit increased by 12% year-on-year, outpacing revenue growth, to SAR 1,207 million compared to SAR 1,079 million in the previous year, resulting in a gross profit margin of 38% versus 37% last year.

Profit before finance expenses, zakat, depreciation and amortization increased by 19% year-on-year to SAR 751 million compared to SAR 630 million in the previous year, raising the annual profit margin before finance expenses, zakat, depreciation and amortization to 23% versus 21% last year.

Net profit jumped by 31% to SAR 471 million, compared to SAR 360 million in the previous year, an increase of SAR 111 million. The annual net profit margin reached 15% versus 13% last year, resulting in earnings per share jumping by 31% to SAR 4.83 per share versus SAR 3.70 per share in the previous year. The increase in net profit is attributed to the main factors, namely the increase in revenues, improved spending efficiency, and improved performance of associate companies.

As for the quarterly performance for the fourth quarter of 2024, which witnessed a decrease in revenues and net profit attributable to shareholders of the company compared to the third quarter of the current year, the group’s revenues decreased by SAR 39 million during the fourth quarter, mainly due to the group’s investment in the Shield of Care Holding Company, which witnessed a decrease in its revenues in the fourth quarter due to settlements with insurance companies, which are partly non-recurring effects.

Also, Makkah Medical Center’s revenues in the fourth quarter returned to the normal quarterly level after reaching a peak during the Hajj season, which this year coincided with the second and third quarters of the fiscal year. In contrast, the rest of the group’s companies achieved healthy growth in revenues in the fourth quarter, which was reflected in an increase in the profits of those companies for the fourth quarter by SAR 21 million.

This strong momentum in financial performance is driven by the company’s expansion and growth strategy, its continuous investment in advanced health infrastructure, and its commitment to enhancing the quality of its medical services to meet the growing needs of society. This is clearly reflected in the increase in the value of total assets by 6% year-on-year, with a compound annual growth rate exceeding 13% for the past five years, to reach 6,615 million riyals by the end of 2024. It is worth noting that Dallah Healthcare Group is listed on the main market of the Saudi Stock Exchange (under the symbol: 4004, and the international identification number: SA135G51UI10), and is one of the leading companies specialized in providing healthcare services in the Kingdom of Saudi Arabia.