Mouwasat Q1 2024 profit grows 3% to SAR 171.6M

Mouwasat Medical Services Co.’s net profit increased 3% to SAR 171.6 million for Q1 2024, from SAR 166.6 million in the prior-year period.

The rise was driven by revenue growth, due to an uptick in the number of outpatient department (OPD) visits and occupancy rates in inpatient departments. This was supported by the commencement of operations at Mouwasat Center in Madinah for rehabilitation and extended care as of January 2024.

The medical services provider also cited improved contractual terms with some clients, the continued performance improvement of new specialized departments in the company’s hospitals, and the continuous enhancement of operating resource efficiency.

This was offset by higher debt provisions related to client balances, which put pressure on the first-quarter profit margins.

Mouwasat’s net profit declined by 5% from SAR 180.69 million in Q4 2023. This came as revenue decreased by 6.5% on a sequential basis amid a relative quarterly decline in the number of OPD visits and inpatient occupancy rates amid the Ramadan seasonality.

Shareholders’ equity, after minority interest, rose to SAR 3.44 billion as of March 31, 2024, from SAR 3.08 billion a year earlier.

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