National Medical Care Company (4005) Q3 2024 earnings summary

Executive summary

• Revenue for 9M 2024 reached SAR 921.1 million, up 18% year-on-year, driven by increased patient numbers, government contracts, and new branch openings.

• Net profit for 9M 2024 was SAR 211 million, a 19% increase year-on-year, with a 22.9% margin, reflecting operational expansion, cost control, and higher outpatient visits.

• Strategic initiatives included launching new services (home healthcare, executive health checks, mental health), expanding facilities, and digital automation.

• Major expansion included the acquisition of Al Salam Health Medical Hospital and the launch of the Rawdah Mental Health Center.

• Bed capacity increased to 1,008 as of September 2024, with new facilities in Jeddah (AlBalad) and Mecca (Haram).

Financial highlights

• EBITDA for 9M 2024 was SAR 260 million, up 14% year-on-year; EBITDA margin at 28.3%.

• Gross profit for 9M 2024 rose to SAR 329.9 million, with gross margin improving to 35.8%.

• Operating expenses increased 66% year-on-year, mainly due to expansion, higher G&A, and provisions for expected credit losses.

• Net profit margin for 9M 2024 was 22.9%, slightly up from 22.7% in 9M 2023.

• Cash and equivalents stood at SAR 279 million at 3Q 2024, with net debt at SAR 51 million.

Outlook and guidance

• Plans to open a new general hospital in Riyadh by 2028 and further expand mental health and home healthcare services.

• Ongoing M&A pipeline, digital transformation, and investment in new hospitals and technology to drive future growth and efficiency.

• Management expects sustainable growth and profitability through diversification and efficiency.

• No significant seasonality or cyclicality is expected to impact annual results.