Care 2024 net profit up 24% to SAR 298.2M; Q4 at 87.2M

National Medical Care Co. (Care) reported a net profit of SAR 298.2 million for 2024, an increase of 24% from SAR 240.9 million in the year-earlier period.

The profit increase was driven by a 19.6% rise in net revenue to SAR 1.29 billion in 2024 from SAR 1.08 billion in 2023, due to higher volume of business from General Organization for Social Insurance, the Ministry of Health, other government clients, and insurance companies, resulting in higher inpatient and outpatient revenue.

Care noted a 14% year-on-year (YoY) growth in total patient count.

Profit growth was further supported by the full year impact of Chronic Care Hospital that was acquired in November 2023 and the acquisition of Al Salam Hospital during Q4.

The company also reported a lower cost of sales ratio relative to revenue, resulting in improved cost absorption.

Gross profit (GP) improved by 22.8% YoY, due to higher revenue and lower cost-of-sale margin, resulting in an improved GP margin of 35.1% from 34.2% for last year.

During the period, there was a reversal of certain previously recorded legal claims.

Meanwhile, Care posted higher other income and favorable Zakat expense due to final assessments issued for 2019 till 2022. The assessments were finalized as the appellate process was completed and decisions were in favor of the company, resulting in the reversal of provisions made in previous years.

The above gains were partially offset by higher marketing expenses, increased expected credit loss provisions, higher general and administrative expenses, elevated interest costs, losses incurred at Al Salam Hospital during the three months following its acquisition in October 2024.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the year reached SAR 377.4 million compared to SAR 301.7 million during 2023 with an improved EBITDA margin of 29.2% -- a 1.3 percentage point improvement over the previous year.

Q4 2024 net earnings rose 37% YoY to SAR 87.2 million.

On a sequential basis, net profit grew 44.9% from SAR 60.19 million in Q3.

Total shareholders’ equity, no minority interest, stood at SAR 1.62 billion by Dec. 31, 2024, compared to SAR 1. 45 billion in the prior-year period.

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