Middle East Healthcare Co. announces the interim financial results for the period ending on 30-06-2017 (Six Months)

Net profit for the 3 months period decreased by 22.91% because of reduction in revenue due to the pricing pattern change from a major Government client, impact of the holy month of Ramadan, Eid holidays and summer vacations, increase in caregivers' salary, and loss relating to the newly commissioned Hail hospital. Gross Profit and Operational Profit for the 3 months period reduced by 15.74% and 29.32% respectively due to the above stated reasons.
 

Decrease in net profit for the current period compared to the previous period by 9.01% is due to the decrease in revenue by 1.9% compared to the last year, increase in caregivers' salaries, initial loss of the Hail hospital and increase in finance charges. Gross profit and operational profit were also decreased in line with the decrease in revenue and increased costs.
 

Decrease in net profit for the current quarter compared to the previous quarter by 45.68% is due to the decrease in revenue by 4.5% compared to the last quarter. The holy Month of Ramadan, Eid holidays and summer vacations coincide in this quarter, during which period the business usually gets slower thereby reducing the profitability.
 

Certain figures of the previous year have been restated and regrouped to conform to the presentation for the current year presentation as per IFRS. For more information refer note (4)-First-time adoption of IFRS of Condensed Interim Consolidated Financial Statements for the period ended 30-06-2017.
 

1- The revenue for the current quarter ended 30 June 2017 amounted to SR391.69 million compared to same quarter of last year of SR410.07million, which shows a decline of 4.5% and SR 815.59 million for the period, ended 30 June 2017 compared to SR 831.59 million for the corresponding period of the previous year with a decline of 1.9%.

2- The total Comprehensive income during the current quarter is SR57.10 million compared to SR 74.07 million for the same quarter last year with a decrease of 22.91% and compared to SR105.12 million of the previous quarter with a decrease of 45.68% and SR162.22 million for the period ended 30 June 2017 compared to SR178.28 million for the similar period of previous year with a decrease of 9.01%.

3- The total shareholders' equity (excluding minority interest of SR65.75million) as at 30 June, 2017 amounted to SR1,572.52 million compared to SR1,398.83million as at 30 June 2016, with an increase of 12.4%.