Dallah Healthcare's revenues grew by 21.7%, delivering a strong performance in Q1 2024

Dallah Healthcare Company announced strong financial results for the first quarter of 2023, ending March 31, with a significant 21.7% increase in revenue to SAR 1,013.26 million, compared to SAR 832.75 million in the same quarter of the previous year. This outstanding performance was driven by a substantial 27.5% increase in the number of patients visiting the company, reflecting growing confidence in the quality of its services and reinforcing its position as a leading healthcare provider in Saudi Arabia.

Details of financial and operational performance

The first quarter of this year witnessed significant operational momentum for Dallah Healthcare Group, which was directly reflected in its key performance indicators. The most prominent results can be summarized as follows:

• Revenue growth: Revenue increased to SAR 1.01 billion, a rise of SAR 180.51 million compared to the same period last year. This growth is primarily attributed to an increase in patient visits, particularly at the group's recently acquired hospitals such as Dallah Al Khobar Hospital and Dallah Al Ahsa Hospital.
• A surge in visitor numbers: The group’s facilities received 936,000 visitors during the first quarter, an increase of 27.5% compared to 734,000 visitors in the same quarter of the previous year, confirming the success of the geographical and operational expansion strategies.
• Net Profit: Despite strong revenue growth, net profit attributable to shareholders decreased by 45.7% to SAR 84.52 million. This decline is primarily due to a one-off event in the same quarter of the previous year, where the company recorded exceptional gains of SAR 51 million. Additionally, financing costs and operating expenses increased as a result of consolidating the results of the new hospitals within the Group's consolidated financial statements.

General context: The healthcare sector and Vision 2030

This strong performance by Dallah Healthcare comes at a time when the Saudi healthcare sector is undergoing a radical transformation within the framework of Vision 2030. The Vision aims to enhance the role of the private sector in providing healthcare services and to improve their quality and efficiency. These trends have created a stimulating investment environment for companies like Dallah to expand and invest in advanced medical infrastructure, meeting the growing demand for high-quality healthcare services from citizens and residents. Dallah's success in increasing its capacity and patient numbers is directly aligned with the objectives of the healthcare transformation program.

Importance and expected impact

These results are significant on several levels. Domestically, they bolster investor confidence in the company's stock (Tadawul: 4004) and the healthcare sector as a whole, demonstrating the effectiveness of its growth model based on expansion and strategic acquisitions. Regionally, Dallah Healthcare's success story serves as a model for healthcare providers in the Gulf region, who face similar demographic and economic challenges and opportunities. This sustained growth also contributes to attracting foreign investment to the Saudi market, thus supporting the national economy.

Future outlook and management commentary

Commenting on the results, Eng. Tariq Al-Qasabi, Chairman of the Board of Directors of Dallah Healthcare, praised the company's resilient performance and its ability to achieve revenues exceeding one billion riyals despite the impact of seasonal factors. He affirmed that the net profit achieved is in line with expectations and the budget for the current year, noting that revenue growth reflects the strength of the group's operational base. Al-Qasabi expressed his optimism for the future, emphasizing that the company continues to benefit from its strategic expansions, with upcoming plans and projects that will further enhance its growth momentum, including the Al-Aredh Hospital north of Riyadh and other expansion projects at its existing facilities.