Middle East Healthcare Co. announces its Interim Financial Results for the Period Ending on 2021-06-30 ( Six Months )

Decrease in net profit for the current quarter compared to the same quarter of the last year is due to:

1- Increase in cost of goods sold compared to same quarter of the last year which effect the GP percentage.

2- Increase in general and administrative expenses compared to same quarter of the last year.

Decrease in net profit for the current quarter compared to the previous quarter is due to:

1- Increase in Financial charges compared to previous quarter

2- Decrease in Other Income compared to previous quarter.

Decrease in net profit for the current six months period compared to the same period of last year is due to:

1- Increase in cost of goods sold compared to the same period of last year which effect the GP percentage

2- Increase in general and administrative expenses and financial cost compared to the same period of last year.

Qualified conclusion
 

As stated in note 6 to the interim condensed consolidated financial statements, accounts receivables as at 30 June 2021 included amounts due from certain government and non-government customers amounting to SR 419.48 million against which an allowance of expected credit losses of SR 84.19 million was maintained by the Group's management based on their assessment of the estimated recoverability and timing of recoverability. These balances have been outstanding for over the average collection cycle of one year and remained uncollected, primarily, due to rejections of claims by the customers against which negotiations are still in progress or amounts that are subject to final reconciliation and agreement before collection. The Group management was unable to provide us with adequate supporting evidence to conclude whether the assumptions and estimates used in the determination of estimated recoverability and timing of recoverability of these balances were reasonable. Consequently, we are unable to determine whether any adjustments are required to be made against these balances in these interim condensed consolidated financial statements.
 

N/A
 

Dammam hospital contribute losses to the extent of 30.48 MSR for the period