National Medical Care Company (4005) Q2 2024 earnings summary

Executive summary

• Revenue for 1H 2024 reached SAR 595.4 million, up 18% year-over-year, with net profit rising 45% to SAR 151 million and basic/diluted EPS at SAR 3.36.

• Achieved strong financial and operational growth, supported by branch expansion, efficiency improvements, and higher referrals.

• Opened new branches in Jeddah (AlBalad, 169 beds) and Mecca (Haram, 54 beds), expanding bed capacity by 67% to 1,008 beds.

• Strategic focus on organic and inorganic growth, including M&A, new hospital in Riyadh, and mental health platform.

• Major acquisitions included Jiwar and Chronic, with an agreement to acquire Al Salam Health Medical Hospital in June 2024.

Financial highlights

• Gross profit margin improved to 36.7% from 33.2% year-over-year; net profit margin rose to 25.3%.

• EBITDA for 1H 2024 increased 24% year-over-year to SAR 172 million, with a margin of 28.9%.

• Operating profit for the six months was SAR 137.5 million, up from SAR 115.0 million year-over-year.

• Dividends of SAR 89.7 million (SAR 2.00 per share) were paid in Q2 2024.

• Total expenses grew below revenue, supporting positive operating leverage.

Outlook and guidance

• Ongoing initiatives target further expansion through M&A, new hospital projects, and mental health services.

• Focus on leveraging operational scale and efficiency for continued margin improvement.

• Interim results may not be indicative of annual performance due to the nature of interim reporting.