National Medical Care Company (4005) Q1 2025 earnings summary

Executive summary

• Achieved 29% year-over-year revenue growth in 1Q 2025 to SAR 385.3 million, with net profit up 5% to SAR 85.4 million, driven by increased patient volumes, new branch integration, and strong government contracts, despite Ramadan impact.

• EBITDA rose 38% year-over-year to SAR 123 million, with margin improving to 31.8%.

• Al Salam Hospital, acquired in October 2024, turned profitable in 1Q 2025, exceeding turnaround expectations.

• Patient volumes surged, with total patients up 37% to 227,222 and inpatients up 41% year-over-year.

• Strategic focus on expansion, new services, efficiency, and digital automation, including new home healthcare and mental health offerings.

Financial highlights

• Revenue: SAR 385.3 million (+29% year-over-year); Gross profit: SAR 143 million (+30%); EBITDA: SAR 123 million (+38%); Net profit: SAR 85.4 million (+5%).

• Gross profit margin increased to 37.1% (+0.2 ppts); EBITDA margin improved to 31.8%; net profit margin contracted to 22.2% due to a one-off Zakat reversal in 1Q 2024.

• Cash and equivalents grew to SAR 602 million as of March 31, 2025; net debt improved to negative SAR 211 million.

• Cash flow from operations up 239% year-over-year to SAR 157 million, supported by improved working capital and profitability.

• Basic and diluted EPS increased to 1.91 from 1.81 year-over-year.

Outlook and guidance

• Management expects continued growth from new facilities, service lines, and digital transformation initiatives.

• Ongoing M&A pipeline, bed capacity expansion, and land purchases for new facilities are in progress.

• No significant seasonality or cyclicality is expected to impact operations.