Care 9M net profit up 55% to SAR 177.5 mln; Q3 at SAR 73.4 mln

National Medical Care Co. (Care) reported a net profit of SAR 177.5 million for the first nine months of 2023, an increase of 55% from SAR 114.6 million in the year-earlier period.

The nine-month revenue improved by 17% due to a higher volume of business from GOSI, MOH, and direct contracts, resulting in higher admissions, surgeries, and patient visits.

Further, MOH billing had a positive pricing impact due to Care facilities achieving HIMSS accreditation. Gross profit improved by 25% due to lower cost of sale expenses as a percentage of revenue.

Care also cited lower sales and marketing expenses, and higher finance income on deposits due to higher daily average deposits.

Q3 2023 net earnings rose 72% year-on-year (YoY) to SAR 73.4 million, due to a 16% increase YoY in net revenue during the current quarter on increased referrals from GOSI and improved business with MOH, resulting in higher admissions and surgeries.

The MOH billing further increased due to Care facilities achieving HIMSS accreditation.

Gross profit improved by 11% due to increased higher margin business from GOSI, MOH and lower cost of sale expenses as a percentage of revenue resulting in improved cost absorption.

The medical services provider also cited lower sales and marketing expenses, reversal of expected credit loss provisions due to settlements with insurance companies and receipt of receivables from National Guard, and increased finance income on deposits with banks due to higher daily average deposits and interest rates.

On a quarterly basis, net profit increased 53.5% from SAR 47.80 million.

Total shareholders’ equity, no minority interest, stood at SAR 1.39 billion by Sept. 30, 2023, compared to SAR 1.19 billion in the prior-year period.

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