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![video link button](/Content/en/images/attachement-icon.jpg)
Abdulaziz Alobaid, CEO of National Medical Care Co.
The rise in National Medical Care Co.'s net profit for Q2 2024 was driven by the increase in revenues and improved cost efficiency, coupled with increased business with the Ministry of Health, General Organization for Social Insurance (GOSI) and the insurance sector, in addition to redemption of Zakat amount upon finalizing the audit operations, said CEO Abdulaziz Al-Obaid.
In an interview with Argaam, the top executive added that the company's increased business came thanks to organic growth of current and new facilities that have been recently acquired.
The company redeemed excess Zakat provisions after completing the evaluation processes for the years 2019-2022 with the Zakat, Tax and Customs Authority (ZATCA). The evaluations for the years 2019-2020 were in the appeal stage, and the case was decided in the company's favor. The Authority proposed a similar settlement for the years 2021-2022 to avoid the appeal, which led to the recovery of the provisions that were set as a precaution, according to the CEO.
He highlighted Care's improving of the customer mix and focus on high-margin services, in addition to continuing its disciplined approach to costs, which raised profit margins.
Al-Obaid also explained that the rise in the number of inpatients and surgeries is due to the increase in transfers from GOSI within the work of the occupational risk activity, noting that the impact of the increase in the number of operations and inpatients was offset by an increase in costs related to medicines, consumables, and human costs.
The CEO also noted that the acquisition of all shares of Al Salam Medical Hospital in Riyadh is subject to regulatory approvals and will then be submitted to the company's general assembly for approval. He indicated that the acquisition of new facilities during 2023 boosted revenue growth.
The company's strategy focuses on areas with the greatest growth potential, and these criteria currently apply only to the cities of Riyadh and Jeddah, said the CEO.
Care reported a net profit of SAR 150.8 million for H1 2024, up 45% compared to SAR 104.1 million in the prior-year period. Q2 net profit amounted to SAR 69.5 million, data available to Argaam showed.
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