Saudi German Health CFO says profit growth driven by patient volumes, expansion

Madani Hozaien, CFO, Middle East Healthcare Co. (Saudi German Health)

Middle East Healthcare Co. (Saudi German Health) CFO Madani Hozaien said the company’s Q4 2024 net income growth was driven by higher revenue from rising patient volumes and expanded capacity, particularly in Dammam and Makkah.

These two branches shifted from losses to higher operational capacity.

In an interview with Argaam, Hozaien said outpatient visits rose 6% year-on-year (YoY) to 621,000 in Q4 2024, adding inpatient admissions grew 11% YoY to 26,000.

Despite revenue growth, gross income declined due to seasonal shifts in the sales mix. This led to variations in gross margin performance across branches.

Hozaien noted that private-sector healthcare demand is rising as the number of insured individuals in Saudi Arabia continues to grow, leading to higher patient traffic to private hospitals.

He added that the company’s nationwide presence has strengthened Saudi German Health’s role as a key strategic partner to the Ministry of Health. Its hospitals in Mecca and Medina play a vital role in serving pilgrims and Umrah visitors.

On Zakat-related settlements, Hozaien stressed the company’s adherence to international accounting standards, adding the outstanding Zakat and tax liabilities for 2023 have been recorded as a precautionary measure.

He reaffirmed the company’s belief in its entitlement to most disputed amounts. If a favorable ruling is issued, the provisions will be reversed accordingly, Hozaien said.

Looking ahead, the CFO expects performance to keep improving in Q1 2025.

Growth will be supported by capacity expansions and increased specialized medical services led by top-tier Saudi consultants, Hozaien said.

According to Argaam data, Saudi German Health’s net profit jumped to SAR 282 million in 2024, up from SAR 17 million a year earlier. Q4 earnings reached SAR 107.1 million due to exceptional income.