Combined profit of Saudi healthcare firms up 4% in H1

10/08/2016 Argaam Special

The aggregate net profit of five Tadawul-listed healthcare firms grew by 4 percent year-on-year (YoY) to SAR 561.8 million in H1-2016, data compiled by Argaam showed.

 

The data included earnings from Dallah Healthcare HoldingMouwasat Medical Services, National Medical Care Co. (Care), Al Hammadi Company for Development and Investment, and Middle East Healthcare Co. (MEAHCO).

 

Aggregate sales revenue also jumped 14 percent YoY to SAR 2.8 billion. The gross profit margin rose 0.2 percent YoY in the same period.

 

Meanwhile, operating expenses increased by nearly 21 percent YoY to SAR 637.1 million. 

 

Combined Profit of Saudi Healthcare Firms (SAR mln)

Change (YoY)

H1-2016

H1-2015

Item

+14%

2807.2

2472.1

Sales

+14%

1237.2

1083.6

Gross income

+0.2%

44.1%

43.8%

Profit margin

(20.5%)

(637.1)

(528.6)

Operating expenses

+4%

561.8

540.8

Net income

 

All five companies witnessed an increase in operating expense during the first half. Al Hammadi reported the biggest cost rise of 76 percent YoY to SAR 58 million, which was due to the operation of Hospital Al-Suwaidi following the closure of its Al-Olaya branch in Q1.

 

MEAHCO contributed the largest share to sector earnings, with its net profit accounting for 32 percent of combined profit.

 

In terms of profit growth, Dallah came on top with a 35 percent leap YoY to SAR 113 million.

 

National Medical Care Co. (Care) followed with a 30 percent YoY jump in net profit, supported by modified contractual terms with Saudi Arabia’s General Organization for Social Insurance (GOSI).

 

In addition, the hospital segment, which is comprised of outpatient clinics and the admission unit, dominated 81 percent of the companies’ aggregate revenue. All sector players reported growth in this segment during the first half, the data added.

 

Results of Saudi Healthcare Firms in H1 (SAR mln)

MEAHCO

Al Hammadi

Care

Mouwasat

Dallah

Item

831.6

282.2

513.7

606.3

573.4

Sales

428.6

111.0

150.3

284.4

262.9

Gross income

51.5%

39.3%

29.3%

46.9 %

45.8 %

Profit margin

(246.4)

(58.3)

(55.5)

(135.8)

(141.1)

Operating expenses

182.2

42.5

90.9

133.4

112.8

Net income

(8%)

(45%)

+30%

+19%

+35%

Growth

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