National Medical Care Company (4005) Q4 2024 earnings summary

Executive summary

• Revenue grew 20% year-over-year to SAR 1,294mn, and net profit rose 24% to SAR 298mn, driven by operational efficiencies, new branches, and increased referrals.

• Patient base expanded by 14% to 742,475, with higher volumes supported by new facilities and government clients.

• Opened new branches in Jeddah, Mecca, and Riyadh, including the acquisition of Al Salam Hospital and launch of the ReLib mental health platform.

• Launched new services such as home healthcare, executive health checks, and mental health offerings.

• Focused on efficiency, automation, and digital transformation to enhance patient experience and operational performance.

Financial highlights

• EBITDA grew 25% to SAR 377mn (29.2% margin), and net profit margin improved to 23.0% (+0.8 ppts); gross profit margin reached 35.1%.

• Operating profit (EBIT) rose 20% to SAR 297mn, with an EBIT margin of 22.9%.

• Operating expenses increased 28% year-over-year, mainly due to expansion and higher provisions.

• Cash flow from operations was SAR 245mn, down 48% due to working capital increases; capex rose 14% to SAR 275mn.

• Total assets reached SAR 2,502mn (+13%), with shareholders' equity at SAR 1,630mn (+12%).

Outlook and guidance

• Plans for further expansion, including a new general hospital in Riyadh by 2028 and a robust M&A pipeline.

• Continued focus on digital automation, operational efficiency, and patient-centric services, with investments in technology and service expansion.

• Emphasis on improving cash flow, managing costs, and strengthening the financial position.