Fakeeh Care profit down 5% to SAR 120.2M in H1 2024; Q2 at SAR 47.5M
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Dr. Soliman Abdel Kader Fakeeh Hospital Co. (Fakeeh Care) posted a net profit after minority interest of SAR 120.2 million for the first half of 2024, a 5% rise from SAR 126 million a year earlier.
Financials (M)
| Item | 6m 2023 | 6m 2024 | Change |
|---|---|---|---|
| Revenues | 1,075.08 | 1,334.38 | 24.1 % |
| Gross Income | 270.58 | 350.46 | 29.5 % |
| Operating Income | 137.04 | 174.52 | 27.4 % |
| Net Income | 125.96 | 120.19 | (4.6 %) |
| Average Shares | 200.00 | 232.00 | 16.0 % |
| EPS (Riyals) | 0.63 | 0.52 | (17.7 %) |
The profit decline was ascribed to the high-base effect in H1 2023 results, including a one-off finance income of SAR 24.8 million. Adjusting for this non-recurring item, the group’s net profit would record a strong 39.4% year-on-year (YoY) rise in H1 2024, in line with revenue growth and enhanced operating profitability during the period.
Fakeeh Care’s net profit margin expanded to 7.8% in H1 2024, compared to the adjusted margin of 6.9% in the first half of 2023.
The group’s revenue in H1 2024 increased to SAR 1.33 billion, up 24.1% YoY, reflecting higher number of billable patients served during the six-month period, increased implied average revenue per patient across the group driven by business mix, and a growing contribution from the group’s operate and manage (O&M) contracts.
Earnings before interest, tax, depreciation and amortization (EBITDA) grew 10.7% YoY to SAR 265.8 million in H1 2024. Compared to the adjusted EBITDA of SAR 215.3 million inH1 2023, which excludes the SAR 24.9 million one-off finance income, the first-half EBITDA would have increased 23.4% YoY.
Current Quarter Comparison (M)
| Item | Q2 2023 | Q2 2024 | Change |
|---|---|---|---|
| Revenues | 545.67 | 654.04 | 19.9 % |
| Gross Income | 126.18 | 161.88 | 28.3 % |
| Operating Income | 58.59 | 71.37 | 21.8 % |
| Net Income | 53.92 | 47.47 | (12.0 %) |
| Average Shares | 200.00 | 232.00 | 16.0 % |
| EPS (Riyals) | 0.27 | 0.20 | (24.1 %) |
In Q2 2024, net earnings dropped 12% to SAR 47.5 million, from SAR 53.9 million in the second quarter of 2023. Fakeeh Care posted a one-off finance income of SAR 12.9 million in the three-month period. Adjusting for this non-recurring item, the group’s net profit would jump 66.9% YoY, in line with revenue growth and enhanced operating profitability during the period.
On the other hand, the group’s revenue rose 19.9% YoY to SAR 654 million. EBITDA also saw a rise of 10.7% YoY to SAR 121.3 million.
Fakeeh Care’s net profit also fell 34.7% on a sequential basis from SAR 72.7 million in Q1 2024 as revenue decreased by 3.9% quarter-on-quarter (QoQ) to SAR 654 million, due to seasonality factors.
General and administrative expenses also increased, weighing on the quarterly profit.
Shareholders’ equity, after minority rights, rose to SAR 2.79 billion as of June 30, 2024, compared to SAR 1.97 billion a year earlier.
Financial results (Million)
| Period | Revenues | Change | Gross Income | Change | Operating Income | Change |
|---|---|---|---|---|---|---|
| Q1 2024 | 680.33 | 28.5 % | 188.58 | 30.6 % | 103.15 | 31.5 % |
| Q2 2024 | 654.04 | 19.9 % | 161.88 | 28.3 % | 71.37 | 21.8 % |
Profit Performance (Million)
| Period | Net Income | Change | EPS(Riyal) | Extraordinary Income/Expense | Net Profit Before Unusual Items | EPS Before XO Items |
|---|---|---|---|---|---|---|
| Q1 2024 | 72.72 | 1.0 % | 0.36 | - | 72.72 | 0.36 |
| Q2 2024 | 47.47 | (12.0 %) | 0.20 | - | 47.47 | 0.20 |
Profitability
| Period | Gross Margin | OIBDA Margin | Net Margin Before Unusual Items |
|---|---|---|---|
| Q1 2024 | 27.05 % | 19.78 % | 10.25 % |
| Q2 2024 | 27.30 % | 19.54 % | 10.07 % |
Per Share Data (Riyal)
| Period | Shares Outstanding (M) | EPS (Riyal) | Adjusted EPS (Riyal) | Book Value (BV) |
|---|---|---|---|---|
| Q1 2024 | 200.00 | 1.40 | 1.27 | 5.46 |
| Q2 2024 | 232.00 | 1.18 | 1.12 | 12.05 |
Multiple Ratios (End of Period Price)
| Period | P/E | Adjusted P/E | Price/book |
|---|---|---|---|
| Q1 2024 | - | - | - |
| Q2 2024 | 51.51 | 54.16 | 5.05 |
Business Segments (Million)
Q2 2024
| Period | Medical Services | Education | Trade, retail and others |
|---|---|---|---|
| Q1 2024 | 635.99 | 26.25 | 18.09 |
| Q2 2024 | 602.41 | 27.29 | 24.35 |
Analysts Estimates (Million)
| Item | Q2 2024 (e) | Q2 2024 (a) | Change |
|---|---|---|---|
| Average | 57.95 | 47.47 | (18.1 %) |
Estimates vs Actual (Million)
| Item | Q2 2024 (e) | Q2 2024 (a) | Change |
|---|---|---|---|
| Al Rajhi Capital | 52.00 | 47.47 | (8.7) % |
| AlJazira Capital | 63.90 | 47.47 | (25.7) % |
| Current | |
| Market Cap (M Riyal) | 13,664.80 |
| Enterprise Value (EV) (M) | 13,808.12 |
| Shares Outstanding ((M)) | 232.00 |
| EPS ( Riyal) (TTM) | 1.24 |
| Book Value (BV) ( Riyal) | 12.45 |
| Par Value ( Riyal) | 1.00 |
| Adjusted P/E (Last12) | 47.49 |
| P/E (TTM) | 47.49 |
| Price/book | 4.73 |
| Return on Average Assets (%) (TTM) | 6.2 |
| Return on Average Equity (%) (TTM) | 15.0 |
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