Care Q1 2023 profit leaps 88% to SAR 56.3 mln

National Medical Care Co. (Care) reported a net profit jump of 88% to SAR 56.3 million for Q1 2023, compared to SAR 30 million in the prior-year period.

Shareholders’ equity, no minority interest, rose to SAR 1.31 billion as of March 31, 2023, from SAR 1.15 billion a year earlier.

The healthcare services provider reported a 23.6% rise year-on-year (YoY) in net revenue due to an increase in contracts with the Ministry of Health (MOH) and the General Organization for Social Insurance (GOSI), which buoyed admissions and surgeries. The MOH billing further increased due to Care facilities achieving the Healthcare Information and Management Systems Society (HIMSS) accreditation.

Further, Care reported a lower cost of sales to revenue ratio. Gross profit margin increased to 34.4% from 29.1% in Q1 2022 on improved absorption of costs and higher margin business from MOH and GOSI. Expenses also declined against expected credit loss provisions, along with higher other income.

Compared to Q4 2022, the first-quarter net profit grew 1.5% from SAR 55.45 million, as revenue grew by 4% due to an increase in contracts with MOH and GOSI. The cost of sales to total revenue also decreased.

Shareholders’ equity, no minority interest, rose to SAR 1.31 billion as of March 31, 2023, from SAR 1.15 billion a year earlier.

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