Dallah net profit down 48% to SAR 26.2 mln in H1 2020

Dallah Healthcare  Co. reported a net profit after Zakat and tax of SAR 26.2 million for the first half of 2020, a 48.12% year-on-year (YoY) decline, compared to SAR 50.5 million in the year-earlier period. 

The decline in net profit was attributed to proactive procedures of infection control, preventive precautions and social distancing as part of the effective infections control policy , in addition to the curfew applied in Riyadh. This led to considerable lowering of operating levels, and slowing down of revenues and the operating revenues accordingly. 

The company also cited higher Zakat provision, and an increase in pre-operating expenses of Dr. Mohamed Alfaqeesh Hospital in which the company owns a share. 

Meanwhile, credit loss provision decreased due to settlement of claims by consumers during the current quarter, which were already provided for earlier. 

The healthcare provider reported a net profit after Zakat and tax of SAR 7 million, a 54% YoY decline, compared to SAR 15.3 million in the same period a year earlier, on lower cost of debt following the drop in lending prices.

On a quarterly basis, net profit slumped 63.5% on proactive procedures of infection control, preventive precautions and social distancing.