Dallah posts 32% profit drop to SAR 100.1 mln in 2020

Dallah Healthcare Co. reported a drop of 32% in net profit before Zakat to SAR 100.1 million for 2020, from SAR 146.9 million a year earlier.

The profit decline was attributed to an increase in startup operating losses of Dr. Mohammed Alfagih Hospital, in which Dallah owns a 31.21% stake, as expected.

The healthcare services provider allocated additional credit losses provisions, resulting from slowdown of economic cycles for some customers, in addition to the credit losses resulting from compilation of subsidiaries following the acquisitions.

Dallah reported higher general and administrative expenses, due to acquisitions and consolidation of subsidiaries’ financials. Zakat expenses also rose, on the consolidation of subsidiaries’ financials and the additional precautionary Zakat provision allocated by the company.

The fourth-quarter net profit plunged 71% YoY to SAR 20.1 million.

Shareholders’ equity, excluding minority interest, rose 15.6% YoY to SAR 1.759 billion in 2020.