Middle East Healthcare Co. announces its Annual financial results for the period ending on 2018-12-31

Decrease in net profit for the current year 2018 compared to the last year 2017 is due to:

1- Revenues were negatively affected by the decrease in outpatient and inpatient numbers in addition to the relatively slow ramp up of Hail hospital and Beverly clinic in Jeddah as expected by the company’s management. This in turn resulted in the decrease of revenue.

2- Increase in salary cost due to the hiring of more talented doctors and other caregivers who will build a higher patient base over the period of time.

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

4- Increase in the depreciation expenses resulting from the renovation and addition to medical equipment, starting of the outpatient clinics tower in Aseer, and Beverly clinic in Jeddah.

Unmodified opinion
 

Certain figures of the previous year have been restated and regrouped to conform to the presentation for the current year presentation as per International Financial Reporting Standard (IFRS) 9 & 15 as endorsed in the Kingdom of Saudi Arabia. For more information refer note 3 Adoption of new standards of Consolidated Financial Statements for the year ended 31-12-2018.