Middle East Healthcare Co. announces its interim Financial results for the period ending on 2019-03-31 ( Three Months )

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

1- Due to renovations in some of the group hospitals, this has affected the patient traffic, which negatively affected revenues

2- Increase in salary cost due to the hiring of more talented caregivers and certain key management professionals in order to increase the operational efficiency, patient journey, patient experience that will build a higher patient base over the period of time.

3- Increase in the general and admin expenses as a result of increased governmental labor costs.

4- Increase in the depreciation expenses resulting from the renovation of hospitals and addition to medical equipment and opening of Beverly clinic in Jeddah

5- Increase in finance charges due to the utilization of working capital facility.

6- The operating loss of Beverly Clinics as expected as per the business plan.

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

In the previous quarter year end benefits of rebate given by the supplier has reduced the cost of medicines/consumable expenses that resulted in higher profits compared to the current quarter.

Unmodified opinion
 

Certain figures of the previous year have been reclassified and regrouped to conform to the presentation for the current year presentation as per International Financial Reporting Standard 16 as endorsed in the Kingdom of Saudi Arabia applicable from 1 January 2019. For more information refer note 2.3 ‘Changes in Significant Accounting Policies’ of Condensed Consolidated Interim Financial Statements for the period ended 31-03-2019.
 

The Company has adopted IRFS 16, as of January 1, 2019 and the application of this was not material and did not required any adjustments to retained earnings as of 1 January 2019.