“Care” profits increased 23.7% to 298.16 million riyals in 2024

The net profit of the National Medical Care Company (Care) increased in 2024 by 23.7% to 298.164 million riyals, compared to 240.927 million riyals in 2023.
According to the company’s statement on Saudi Arabia’s circulation, this improvement in the net profit is due to the following factors:
– The increase in revenues during the current year compared to the previous year.
– The low cost of sales as a percentage of revenues, which contributed to enhancing cost efficiency.
The total profit improved by 22.8% compared to the same period last year, driven by the increase in revenues and the decrease in the margin of sales cost, which led to an increase in the total profit margin to 35.1% compared to 34.2% in the past year.
– Reflecting some of the previously registered legal claims, which are no longer required based on the evaluation of the administration and an independent legal opinion.
The growth of net profit was also supported by the influence of the chronic specialized medical care hospital that was completely acquired throughout the entire year in November 2023.
– Other revenues.
– The decrease in Zakat expenses as a result of the completion of the final settlements of the period from 2019 to 2022, where the appeal procedures and the issuance of decisions were completed in favor of the company, which led to the opposite of the allocations that were formed in previous years.
However, these gains were partially affected by several factors, including:
– Increasing marketing expenses as a result of intensifying promotional campaigns to enhance attendance in the market and support the brand and company services.
– The high allocations of credit losses are high as a result of the amendment of economic indicators and the slowdown of recovery rates during the current year.
– Increasing public and administrative expenses as a result of the unification of the new facilities that have been acquired since 2023.
High interest costs due to new financing facilities and leasing contracts.
– Operating losses at Al Salam Medical Health Hospital during the first three months that followed the company’s acquisition in October 2024.
The profits before interest, taxes, depreciation and consumption (EBITDA) for this year amounted to 377.4 million riyals, compared to 301.7 million riyals in 2023, with an improvement in the margin (Ebitda) to reach 29.2%, an increase of 1.3 percentage points over the previous year.