The profits of Sulaiman Al Habib Medical Group increased by 5.3% to reach 246.6 million riyals during the first quarter of 2020, compared to 234 million riyals in the same period in the year 2019.


According to ArabiaNet, the company said that the reason for the increase in profits during the current quarter, compared to the corresponding quarter of the previous year is due to:


- Increase in revenue due to the increase in the number of patients as a result of the opening of the Khobar Hospital and its start-up during the second quarter of 2019, as well as the increase in sales of the pharmacy sector, where growth rates in the hospital and pharmacies sector were 5.41% and 13.94%, respectively, in addition to higher revenue from contracts The new developments obtained by the group during the year 2019 AD in the solutions sector, where the solutions sector continued its growth, achieving a growth rate of 152.38% and an increase of 32 million riyals.


While the distribution of the sectors' contribution rates in the revenues were as follows: the hospital sector 78.4%, the pharmacy sector 17.6%, while the solutions sector contributed 4.0%.


- Increase in operating income. Income from operations reached 258.61 million Saudi riyals, an increase of 10.43 million Saudi Riyals, with a growth rate of 4.20%, while the income from operations amounted to 19.25% compared to 20.21% during the same period in 2019.


- EBITDA profit increased to 353.27 million Saudi riyals, at a rate of 10.03%, as profits increased by 32.20 million Saudi Riyals compared to the same period in 2019, while the group maintained almost stable profit margin ratio before consumption and amortization Interest, Zakat and Tax (EBITDA) increased by 26.30%, compared to 26.15% during the same period in 2019.


This came despite the decrease in gross profit as a result of being affected by the increase in operating costs for Al-Khobar Hospital, which is still in the phase of accelerating revenue growth during its first operating year.