‎Dallah Healthcare Group posts 31% profit leap to SAR 471M in 2024

Eng. Alkasabi affirmed that the year 2024 witnessed strong growth across various financial indicators, supported by the company’s expansion, its keenness on enhancing operational efficiency, the continuous increase in patient numbers, and market share growth. He noted that revenues increased by 9%, gross profit by 12%, and net profit by 31% compared to 2023. He added that one of the positive indicators achieved by the company during the year was the operational cash flow, which reached SAR 678 million, compared to SAR 625 million in the previous year. This amount is sufficient to finance asset additions, dividend distributions, and debt servicing, while also generating a surplus.

The company earlier previously announced 9% growth in revenue for 2024, reaching SAR 3.206 billion, compared to SAR 2.943 billion in the previous year. This growth was driven by increased operational capacity, enhanced efficiency, and the continuous rise in the number of hospital patients. The number of patients increased by 4% for outpatient and emergency visits and 3% for inpatients, with the company now receiving more than 2.8 million visits annually across its hospitals.

Contributors to the increase in the company’s annual revenue include the continuous growth in the provision of advanced medical procedures across the group’s hospitals. Positive contributions also came from the expansion of Dallah Namar Hospital in 2024, which includes a dedicated outpatient building with 150 clinics across various specialties, as well as the opening of Dallah Clinics in the Al-Yarmouk district, Riyadh. Additionally, Makkah Medical Center experienced higher inpatient and outpatient numbers due to increased demand for healthcare services in Makkah, especially during the Hajj and Umrah seasons.

Gross profitjumped12% year-over-year (YoY), outpacing the revenue growth, reaching SAR 1.207 billion compared to SAR 1.079 billion in the previous year. This led to an improvement in the gross profit margin to 38%, up from 37%last year. EBITDA climbed 19% YoY, reaching SAR 751 million, up from SAR 630 million in the previous year. EBITDA margin also expanded to 23%from 21%last year.

Net profit surged 31%to SAR 471 million, compared to SAR 360 million in the previous year, marking an increase of SAR 111 million. The annual net profit marginimproved to 15%, up from 13%last year. Consequently, earnings per share (EPS) increased by 31% to SAR 4.83, compared to SAR 3.70 in the previous year.

The rise in net profit is primarily attributed to higher revenue, improved spending efficiency, and enhanced performance of affiliated companies.

In Q4 2024, the company experienced a decline in revenue and net profit attributable to its shareholders compared to Q3 2024. The group’s revenue decreased by SAR 39 million during Q4 2024, primarily due to its investment in Care Shield Holding Co. (CSHC), which saw a drop in revenue during the quarter as a result of settlements with insurance companies—partially non-recurring impacts.

Additionally, Makkah Medical Center’s revenue in Q4 2024 returned to its usual quarterly level after peaking during the Hajj season, which fell in the second and third quarters of the year.

Meanwhile, the rest of the group’s companies recorded solid revenue growth in Q4, contributing to an increase of SAR 21 million in their profits.

This strong financial momentum is driven by the company’s strategic focus on expansion and growth, continuous investment in advanced healthcare infrastructure, and commitment to enhancing the quality of medical services to meet the evolving needs of the community. This is evident in the 6% year-on-year (YoY) increase in total assets, with a compound annual growth rate exceeding 13% over the past five years, reaching SAR 6,615 million by the end of 2024.

Dallah Healthcare is listed on Tadawul under the symbol 4004 (ISIN: SA135G51UI10) and is one of the leading providers of healthcare services in the Kingdom of Saudi Arabia.

Eng. Alkasabi affirmed that the year 2024 witnessed strong growth across various financial indicators, supported by the company’s expansion, its keenness on enhancing operational efficiency, the continuous increase in patient numbers, and market share growth. He noted that revenues increased by 9%, gross profit by 12%, and net profit by 31% compared to 2023. He added that one of the positive indicators achieved by the company during the year was the operational cash flow, which reached SAR 678 million, compared to SAR 625 million in the previous year. This amount is sufficient to finance asset additions, dividend distributions, and debt servicing, while also generating a surplus.

The company earlier previously announced 9% growth in revenue for 2024, reaching SAR 3.206 billion, compared to SAR 2.943 billion in the previous year. This growth was driven by increased operational capacity, enhanced efficiency, and the continuous rise in the number of hospital patients. The number of patients increased by 4% for outpatient and emergency visits and 3% for inpatients, with the company now receiving more than 2.8 million visits annually across its hospitals.

Contributors to the increase in the company’s annual revenue include the continuous growth in the provision of advanced medical procedures across the group’s hospitals. Positive contributions also came from the expansion of Dallah Namar Hospital in 2024, which includes a dedicated outpatient building with 150 clinics across various specialties, as well as the opening of Dallah Clinics in the Al-Yarmouk district, Riyadh. Additionally, Makkah Medical Center experienced higher inpatient and outpatient numbers due to increased demand for healthcare services in Makkah, especially during the Hajj and Umrah seasons.

Gross profitjumped12% year-over-year (YoY), outpacing the revenue growth, reaching SAR 1.207 billion compared to SAR 1.079 billion in the previous year. This led to an improvement in the gross profit margin to 38%, up from 37%last year. EBITDA climbed 19% YoY, reaching SAR 751 million, up from SAR 630 million in the previous year. EBITDA margin also expanded to 23%from 21%last year.

Net profit surged 31%to SAR 471 million, compared to SAR 360 million in the previous year, marking an increase of SAR 111 million. The annual net profit marginimproved to 15%, up from 13%last year. Consequently, earnings per share (EPS) increased by 31% to SAR 4.83, compared to SAR 3.70 in the previous year.

The rise in net profit is primarily attributed to higher revenue, improved spending efficiency, and enhanced performance of affiliated companies.

In Q4 2024, the company experienced a decline in revenue and net profit attributable to its shareholders compared to Q3 2024. The group’s revenue decreased by SAR 39 million during Q4 2024, primarily due to its investment in Care Shield Holding Co. (CSHC), which saw a drop in revenue during the quarter as a result of settlements with insurance companies—partially non-recurring impacts.

Additionally, Makkah Medical Center’s revenue in Q4 2024 returned to its usual quarterly level after peaking during the Hajj season, which fell in the second and third quarters of the year.

Meanwhile, the rest of the group’s companies recorded solid revenue growth in Q4, contributing to an increase of SAR 21 million in their profits.

This strong financial momentum is driven by the company’s strategic focus on expansion and growth, continuous investment in advanced healthcare infrastructure, and commitment to enhancing the quality of medical services to meet the evolving needs of the community. This is evident in the 6% year-on-year (YoY) increase in total assets, with a compound annual growth rate exceeding 13% over the past five years, reaching SAR 6,615 million by the end of 2024.

Dallah Healthcare is listed on Tadawul under the symbol 4004 (ISIN: SA135G51UI10) and is one of the leading providers of healthcare services in the Kingdom of Saudi Arabia.