Al Hammadi net profit up 54% to SAR 100.6 mln in 9M 2020

Al Hammadi Co. for Development and Investment reported a net profit after Zakat and tax of SAR 100.6 million for the first nine months of 2020, a 54% increase, compared to SAR 65.4 million in the same period a year earlier.

The company attributed the increase in net profit to higher number of patient transfers from the Ministry of Health, continued improvement in the performance of Nuzha branch hospital and the increase in the operating efficiency of assets.

The healthcare provider also cited lower finance costs and staff cost, resulting from the government support for private sector companies during COVID-19 pandemic, as reasons for the profit increase.

The company reported a net profit of SAR 36.6 million for the third quarter of 2020, a 73% year-on-year (YoY) increase.

When compared to previous quarter, net profit fell 6.5% during Q3 on the increase in some items of the cost of revenue associated with operations, particularly after the outpatient operations, higher administrative expenses and booking additional provisions due to the unusual increase in the degree of uncertainty that affected accounting estimates due to market fluctuations from the circumstances imposed by the pandemic.