Middle East Healthcare Co. announces the interim financial results for the period ending on 30-09-2016 (Nine Months)

The revenue during the quarter increased to SR 379.09 million compared to SR 352.20 million in the same quarter of last year which shows a growth rate of 7.6% , that resulted in an increase of gross profit by 8.72%. This growth is supported by the continuous growth in outpatient traffic, price increase and case mix of patients. The growth of operational profit is 2.30% despite the increase in selling and distribution expenses mainly due to the increase in provision for rejections and bad and doubtful debts. The net profit for the quarter increased by 1.40%.
 

The revenue during the period increased to SR 1210.68 million compared to SR 1115.84 million in the same period of last year with a growth rate of 8.5% , which resulted in an increase of gross profit by 5.33%. This is mainly due to the addition of 22 clinics that resulted in increased outpatient traffic, case mix and increase in prices. The operational profit reduced by 4.11% due to the increase in selling and distribution expenses mainly due the provision for rejections and bad and doubtful debts, due to the increase in aging of receivables. The net profit for the quarter reduced by 4.76% mainly due to the overall increase in medical staff cost due to the increment and new hiring and the increased provisions.
 

The net profit for this quarter increased by 19.48%, and the operational profit increased by 18.41%. This is mainly due to the control in general and administrative expenses, increase in other income and due to the change in estimated provisions on a receivable account. The Gross profit reduced by 6.07% mainly due to the Holy month of Ramadan and Eid holidays and summer vacation impact.
 

Emphasis of Matter:On 29-03-2016 the Company shares were listed in the Saudi Stock Exchange (Tadawul) after obtaining the approval from capital Market Authority to convert the Company from Closed Joint Stock Company to a Public Joint Stock Company.

On 29-12-2015 the company obtained approval from Capital Market Authority (CMA) to issue 27,612,000 shares representing 30% of the company share capital in an Initial Public Offering and these shares were offered to the public. Accordingly the shareholders diluted their shareholding to the extent of 30%. The company shares are listed in the Saudi Stock Exchange (Tadawul) on 29-03-2016.
 

Sales for the quarter ended 30 September 2016 amounted to SR379.09m compared to the same quarter last year of SR352.2m with an increase 7.6%. The sales for the period ended 30 September 2016 amounted to SR1210.68m compared to the same period last year of SR1115.84m, with an increase of 8.5%. The total shareholders' equity (excluding minority interest) as at 30 September 2016 amounted to SR1456.4m compared to SR1255m at 30 September 2015, an increase of 16%.

GAZT has refunded (and credited to Zakat account, to be adjusted against future zakat laiability) the income tax paid on the share of profits of International Finance Corporation (IFC) and an amount of SR 13,552,448.23 has been credited to Shareholders equity. Accordingly the company is not required to pay income tax from the year 2016 onwards on the share of IFC profit.