Monday , March 20 2023

Saudi Germany's profits declined by 41% at the end of the third quarter


Middle East Healthcare Company earnings declined by 41.17 percent to 20.16 million riyals at the end of the third quarter of 2018 compared to a profit of 64.88 million riyals achieved over the same period last year.

Gross profit for the period ending 2018-09-30 reached £ 389 million against $ 452 million for the same period last year, a decrease of 13.97%.

Earnings per share were $ 1.54 billion compared to $ 2.57 for the same period last year.

The company said: The reason for the fall in net profits in the current quarter compared to the same quarter of the previous year to:
Revenue was negatively affected by the drop in the number of outpatients, except for relatively slow progress at Hail Hospital and Beverly Clinics in Jeddah, which was expected by the company's management.

2. Start-up costs for the operation of Beverly Clinics in Jeddah that affected operating and non-operating expenses during the current quarter, which were assessed in advance according to the Company's business plan

3- Increased sales and administrative costs due to higher wages. Wage costs also rose due to Beverly's new clinic in Jeddah and outpatient clinics in the Saudi-Germany hospital in Asir.

4 – Increase in depreciation costs resulting from renovations and additions to medical equipment and also work on the Asir Hospital Outpatient Tower and at Beverly Clinics in Jeddah.

5. Increase of financing costs due to the increase in bank loans.

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