A look at Mouwasat financial performance, operating segments in Q4 2019

Mouwasat Medical Services Co. has reported a 53% profit increase year-on-year (YoY) to SAR 130.5 million in Q4 2019, its highest quarterly earnings since inception, data compiled by Argaam showed.

Q4 earnings were backed by record revenues of SAR 505 million in the three-month period, compared to SAR 456 million in Q4 2018, on higher revenue of hospitals and pharmaceuticals segments in addition to higher operating rates in Al Khobar hospital.

Operating expenses dropped by more than 15% YoY to SAR 90.4 million, backed by lower distribution and selling expenses. Also, the Saudi medical services provider wrote back doubtful debt provisions at SAR 18.6 million in Q4 2019, compared to provisions of SAR 19.9 million in Q4 2018.

Zakat expenses dropped to its lowest level since debut at around SAR 900,000 in Q4 2019, compared to SAR 6.7 million in year-earlier period.

Segment-wise, sales revenue of the outpatient clinics segment grew by more than 26% in Q4 2019 to hit a life-time high of SAR 209.6 million, on higher operating rates in Al Khobar hospital.

Profit margins rose by 7.7% YoY to 48.6% in Q4 2019, despite higher indirect costs level, as the company opened new divisions and expanded the number of specialty clinics.

The pharmaceuticals division sales revenue bucked a three-quarter downtrend, rising to a record of SAR 74.3 million in Q4 2019, compared to SAR 62.9 million in year-earlier period.

Gross profit margins declined by 2.1% YoY to 27.4% in Q4 2019.

The admission segment reported SAR 221.2 million in sales revenue in Q4 2019, versus SAR 227.3 million in Q4 2018.

Gross profit margins fell to SAR 48.8% in Q4 2019, compared to SAR 52.2% in year-earlier period, on lower revenue and higher direct costs.

The company’s net receivables increased - for the fourth quarter in a row- to SAR 717.6 million in Q4 2019, compared to SAR 655.3 million in the corresponding period.

The book value of the ongoing construction projects - new hospitals and brownfield developments in Dammam and Madinah- stood at around SAR 242 million in 2019.

For more reports