Care 9M net profit up 19% to SAR 211M; Q3 at SAR 60.2M

National Medical Care Co. (Care) reported a net profit of SAR 211 million for the first nine months of 2024, an increase of 19% from SAR 177.4 million in the year-earlier period.

The nine-month revenue improved by 17.8% to SAR 921.1 million, compared to SAR 781.9 million in the year-earlier period buoyed by the acquisition of new facilities after 9M 2023.

The revenue was also boosted by higher business volumes from the General Organization for Social Insurance (GOSI), the Ministry of Health, other government clients, insurance companies, and direct contracts.

This growth was further fueled by a 6% year-on-year increase in the total number of patients, and improved cost management.

Consequently, gross profit margin expanded to 35.8% from 33.6% in the prior-year period.

Moreover, the profit growth was attributed to favorable Zakat expenses, resulting from the final assessments issued for the period from 2019 to 2022. The appeal process was completed and the decisions were in favor of the company, which led to the reversal of the provisions made in previous years.

This growth came despite the increase in financing income due to higher average deposits, as well as the increase in marketing expenses due to strong digital marketing campaigns to improve market presence and reach a wider audience.

In addition, expected credit loss provisions rose due to revised economic indicators and slower collection rates during the current period.

General and administrative expenses rose as well as interest costs due to new financing and leasing facilities.

Q3 2024 net profit dropped 18% from SAR 73.38 million to SAR 60.2 million.

On a quarterly basis, the third-quarter net profit fell 13.4% from SAR 69.50 million in Q2 2024.

Total shareholders’ equity, no minority interest, stood at SAR 1.54 billion by Sept. 30, 2024, compared to SAR 1.39 billion in the prior-year period.

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