Care net profit rises 25% to SAR 170.1 mln in 2022; Q4 at SAR 55.5 mln

National Medical Care Co. (Care) reported a net profit of SAR 170.1 million for 2022, a 25% increase from SAR 136.4 million in the previous year.

The medical services provider’s net revenue rose 8.6% year-on-year (YoY) due to higher volume of business and increased patient visits, including surgeries and admissions.

The improved net profit was also driven by lower ratio of cost of sale expense to revenue, due to improved absorption of costs resulting in higher gross profit and margin.

Gross profit margin jumped from 29.2% in 2021 to 31.6% in 2022. Care also noted reduced sales and marketing expenses in the current year due to lower provisions against expected credit losses, in addition to a decrease in Zakat expenses.

Meanwhile, general and administrative expenses rose and other income edged lower.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) reached SAR 244.2 million compared to SAR 214.6 million during 2021 with an improved margin of 26.6%.

Net profit margin for the year increased from 16.1% to 18.5% in 2022.

In Q4 2022, Care posted a 51% YoY rise in net profit after Zakat and tax to SAR 55.5 million.

On a sequential basis, Q4 profit rose 30.1% from SAR 42.63 million.

Shareholders’ equity, no minority interest, grew to SAR 1.26 billion as of Dec. 31, 2022, from SAR 1.12 billion a year earlier.

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