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Healthcare group Al Hammadi Holding’s net income rose 17.9% y-o-y to SAR 303.3 mn in FY 2023, according to its earnings release (pdf). Its revenues were up 4.8% y-o-y to SAR 1.2 bn. On a quarterly basis, Al Hammadi’s net income fell 10.9% y-o-y in 4Q 2023 to SAR 65.2 mn, and its top line recorded a 11.4% y-o-y decrease to SAR 303.7 mn.
Deep dive: The medical facilities operator and owner attributed the rise in net income during the year to strong revenue growth, lower sales, general, and administrative expenses, and a 65% y-o-y decline in expected credit loss provisions. Higher revenues throughout the year came on the back of growth in medical services and in-house pharmacies. Although its inpatient admissions declined 10% y-o-y in 2023, revenues “remained robust” as it introduced strategic price hikes and admitted more complex cases.
Inpatient and outpatient services accounted for 81% of revenues: Al Hammadi’s medical services — which comprises inpatient and outpatient operations at its Al Nuzha and Al Suwaidi hospitals — generated SAR 951 mn in revenues last, accounting for 81% of the healthcare operator’s consolidated revenues. Its pharma segment raked in SAR 226 mn in revenues, accounting for the remaining 19%.
Dividend: Al Hammadi will distribute SAR 56 mn in dividends for 4Q 2023 at SAR 0.35 per share, it said in a separate isclosure to Tadawul. A distribution date is set on Thursday, 4 April.
Al Hammadi delivered on its expansion strategy last year, adding 20 inpatient beds at Al Suwaidi hospital and 20 new clinics as part of its first phase of its outpatient expansion in the hospital. Some 20 new clinics are set to be added this year. It also unrolled 20 new outpatient clinics at its Al Nuzha hospital last year.
Looking ahead: The company plans to open two new hospitals in the next few years in Riyadh. A planned Olaya hospital facility is expected to be inaugurated in 2026, while Al Narjis hospital would open its doors in 2028.
