Saudi German Health makes SAR 264.1M profit in 9M 2025, SAR 40.3M in Q3

Middle East Healthcare Co. (Saudi German Health) posted net earnings of SAR 264.1 million for the first nine months of 2025, up from SAR 170.7 million in the year before.

Elevated revenues mainly lifted the Saudi-listed company’s nine-month profit increase during the current period, supported by growth in the total number of inpatient admissions and outpatient visits, as well as the expansion of bed capacity across selected facilities within the group.

The company also benefited from an exceptional contract awarded by the Ministry of Health to operate Mina Emergency Hospital II during the 2025 Hajj season. This is besides lower finance costs due to improved leverage and declining interest rates.

Moreover, in 9M 2025, Saudi German Health generated a one-off capital gain of SAR 114 million from the sale of an unused land plot in Riyadh, compared to a capital gain of SAR 19.6 million recorded last year.

However, the Saudi healthcare provider’s net profits tumbled by 36.9% to SAR 40.3 million in Q3 2025, versus SAR 63.84 million in the same quarter last year.

This quarterly earnings drop was mainly attributed to higher operating costs and increased staff expenses resulting from new hires linked to capacity expansion across several branches and the introduction of new subspecialties across various departments.

General, selling, and marketing expenses also rose following the implementation of the “NPHIES” system for Ministry of Health billing starting April 2025, while the company also recorded a higher share of losses from an associate, Al-Sobh New Medical Co., which is 22.4% owned by the group, after it commenced operations on Sept. 15.

This was partly offset by higher revenues during the quarter, supported by increased inpatient and outpatient volumes and expanded bed capacity in selected facilities.

On a quarterly basis, the three-month bottom line shrank from SAR 63.67 million in Q2 2025.

Total shareholders' equity, after minority interest, reached SAR 1.84 billion by the end of Sept. 30, 2025, edging up from SAR 1.49 billion a year earlier.

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