One billion riyals annual profit of Sulaiman Al-Habib

Dr. Sulaiman Al-Habib Medical Services Group achieved a growth of 21.3% in net profit to reach 1.055 billion riyals in 2020 compared to 870.23 billion riyals in 2019.

According to Arabiya Net, the company said in a statement that revenues amounted to 5.86 billion riyals, compared to 5.016 billion riyals in 2019, with a growth rate of 16.9%.

The company attributed the growth to 3 main reasons, the first of which is the growth in revenues, as a result of the growth of the hospital sector, the pharmacy sector and the solutions sector.

The growth in revenues in the hospital sector is due to the increase in occupancy rates for admission departments, in addition to the increase in the pharmacy sector sales for the year 2020, as well as the increase in revenues in the solutions sector from new contracts obtained by the group during the year 2019. And also 2020, according to the company.

As for the second reason for growth, the group attributed it to the increase in profit before depreciation, amortization, interest, zakat and taxes (EBITDA) by 306.36 million riyals compared to the year 2019, which reached 1,491.70 million riyals, with a growth rate of 25.85%, while the profit margin increased Before depreciation, amortization, interest, zakat and tax (EBITDA) to reach 25.45%, compared to 23.63% compared to the previous year.

and the last reason for the growth last year was the increase in net income by 21.29%, to reach 1,055.48 million Saudi riyals, and an increase in the net income margin to 18.01% compared to 17.35% in 2019, as the group was able to increase profits despite From the increase in costs associated with operating Al Khobar Hospital during the second quarter of 2019, which is still in an acceleration phase in revenue growth, as well as the positive impact of revenue growth and the increase in occupancy rates in hospitalization departments during the year 2020.

The group announced the Board of Directors’s recommendation to distribute cash dividends to shareholders for the fourth quarter of 2020, by 210 million riyals per share, bringing the share of the share to 60 halala.