Fakeeh Care’s outlook positive for medium, long-term growth: CEO

Dr. Soliman Abdulkader Fakeeh Hospital Co. (Fakeeh Care Group) has a positive outlook on medium and long-term growth prospects, CEO, Dr. Mazen Fakeeh, told Argaam.

 

Fakeeh highlighted that the group's optimism is driven by overall positive expectations across the Kingdom, including rapid population growth and rising demand for expanded healthcare services.

 

 

During Q1 2024, the group's net profit aligned with revenue growth, reflecting a 21% increase in adjusted earnings attributable to shareholders to SAR 72.7 million, following a SAR 11.9 million adjustment for one-off items, the CEO disclosed.

 

Patient visits (inpatients and outpatients but excluding follow-ups) totaled 428,300 by March 31, 2024, marking a 12.5% year-on-year (YoY) hike.

 

Outpatients rose 12.5% YoY to 416,900, with Riyadh Hospital alone recording 37,600 visits despite the impact of Ramadan seasonality.

 

Inpatients surged by 9.4% YoY to 11,400 during Q1 2024. The number of surgeries at Riyadh Hospital reached 1,400, alongside strong demand for complex surgical procedures in Jeddah, where occupancy reached 88.3% YoY in the same quarter, the CEO added.

 

The performance of Jeddah Hospital and medical centers significantly contributed to profitability, supported by operational contracts, while Riyadh Hospital's efficiency notably improved, albeit still in a growth phase.

 

Other business segments, particularly the group's medical college, maintained profitability and revenue growth in Q1 2024.

 

The NEOM management and operation contract positively impacted the group’s revenues in Q1 2024, as per the agreement initiated in June 2023, reflecting its annual contribution to the group's quarterly revenues.

 

Furthermore, Fakeeh highlighted the recovery of SAR 1.5 billion in receivables from the group's subsidiary in the UAE, revenues of which were recorded in the group's accounts for the nine-month period ended Sept. 30, 2023.

 

Financial revenues attributable to Q1 2023 amounted to SAR 11.9 million, impacting comparative financial results for the second and third quarters of 2024.

 

The CEO also addressed shareholder rights reduction, mentioning the group's achievement of SAR 273.3 million in profits for the 12-month period ended March 31, 2023. This is in addition to the distribution of SAR 1.15 billion in dividends to shareholders following the recovery of dues from the UAE-based subsidiary, resulting in a SAR 877 million annual difference.

 

Fakeeh Care remains committed to advancing its strategic objectives, which include expanding high-growth company assets and operational contracts, increasing its presence in home healthcare across additional cities, and enhancing healthcare revenues through specialized care.

 

According to data available on Argaam, Fakeeh Care's profits marginally climbed to SAR 72.7 million by the end of Q1 2024, compared to SAR 72 million a year earlier.