Dr Sulaiman Al Habib Medical Services (4013) Q2 2024 earnings summary

Executive summary

• Achieved double-digit revenue and net income growth year-over-year in both Q2 and H1 2024, driven by strong hospital and pharmacy performance.

• Maintained robust gross and EBITDA margins, with continued expansion and operational excellence initiatives.

• Interim condensed consolidated financial statements for Q2 and H1 2024 were prepared in accordance with IAS 34 as endorsed in Saudi Arabia, with no material misstatements found by auditors.

• Advanced multiple hospital projects, reinforcing market leadership and future growth prospects.

• Recognized for medical excellence, digital innovation, and talent development.

Financial highlights

• Q2 2024 revenue rose 13.26% year-over-year to SAR 2,573.62 million; H1 2024 revenue up 11.27% to SAR 5,095.03 million.

• Q2 2024 net income increased 13.98% year-over-year to SAR 555.03 million; H1 2024 net income up 13.29% to SAR 1,105.97 million.

• Gross profit margin stable at 34.12% in Q2 2024 and 34.45% in H1 2024; gross profit for H1 2024 reached SAR 1,755 million.

• EBITDA margin at 26.54% in Q2 2024 and 26.78% in H1 2024.

• Net income margin at 21.57% in Q2 2024 and 21.71% in H1 2024.

Outlook and guidance

• Ongoing expansion with several hospitals expected to be completed in 2024 and 2025.

• Focus on digital transformation, operational efficiency, and ESG integration to drive sustainable growth.

• Interim results may not reflect full-year performance due to seasonality and other factors; statements should be read with annual results.