Equipment House 9M 2022 net profit down 29% to SAR 42.8 mln; Q3 at SAR 8.7 mln

Scientific and Medical Equipment House Co. (Equipment House) recorded a drop of 29% in net profit after Zakat and tax to SAR 42.8 million in the first nine months of 2022, from SAR 60 million in the year-ago period.

The company recorded an increase of SAR 5.4 million year-on-year (YoY) in finance costs. Zakat and employees expenses increased by SAR 2.4 million and SAR 2.3 million YoY, respectively.

On the other hand, Equipment House reported a decline in its share of results in subsidiaries by SAR 4.8 million, with other income dropping by SAR 2.9 million YoY in the same period.

In Q3 2022, net profit after Zakat and tax fell by 49% to SAR 8.7 million, from SAR 16.89 million in Q3 2021. The medical equipment supplier reported a rise in salaries and the like, due to higher number of employees enrolled in new projects compared to the same period last year. New roles and duties were created to boost the company’s business and support future expansion.

Equipment House reported an increase in expenses from Naqaa Co., related to an increase in the number of pharmacies (acquisition and transfer costs).

It also reported higher amortization of right-of-use assets (the new pharmacies in Naqaa). Higher financing interest and Zakat expenses also weighed on the third-quarter results.

Compared to Q2 2022, net profit slumped 49.8% from SAR 17.36 million.

Total shareholders’ equity, no minority interest, stood at SAR 496.3 million as of Sept. 30, 2022, compared to SAR 473.5 million in the year-earlier period.

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