Mouwasat Medical Services Company (4002) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 reached SR 764.35 million, up 5.75% year-over-year, driven by growth in medical services, higher outpatient visits, and improved inpatient occupancy.

• Net profit attributable to shareholders rose to SR 197.05 million, a 14.84% increase from Q1 2024, supported by revenue growth, lower impairment provisions, higher other income, reduced financing costs, and lower Zakat expense.

• Gross profit improved to SR 347.2 million, with a stable gross margin compared to the prior year.

• The group continued expansion projects, with significant investments in property and equipment.

Financial highlights

• Medical services revenue grew to SR 652.2 million, while pharmaceutical sales slightly declined to SR 112.1 million.

• Operating profit increased to SR 213.3 million, up 15.27% year-over-year.

• Basic and diluted EPS rose to SR 0.99 from SR 0.86 year-over-year.

• Cash and cash equivalents at period end were SR 588.4 million, up from SR 426.6 million at year-end 2024.

• Net cash from operating activities was SR 264.5 million, with net cash used in investing activities at SR 135.8 million.

Outlook and guidance

• Revenue growth is expected to continue, supported by improved contractual terms and higher patient volumes.

• Ongoing expansion projects and capital commitments of SR 352.4 million signal continued investment in capacity.

• Seasonality, such as Ramadan, may impact outpatient and inpatient volumes in certain quarters.