Saudi German Health Q1 2026 profit down to SAR 25.7M

Saudi German Health (SGH) reported a net profit of SAR 25.7 million in Q1 2026, plunging 84% from SAR 160.1 million a year earlier.

The sharp annual decline in earnings was mainly driven by the absence of a non-recurring capital gain of SAR 114 million recorded in the comparable period of 2025, following the sale of unused land in Riyadh.

Earnings were also impacted by the application of National Health Insurance Program (NPHIES) fees on Ministry of Health revenues starting April 2025, in addition to the company’s share of losses from an investee that commenced operations in Q4 2025.

Despite this, revenues increased during the quarter, supported by a rise in inpatient and outpatient visits, alongside the expansion of subspecialty services, which enhanced the service mix and increased case complexity.

On a sequential basis, net profit declined by 32% from SAR 37.79 million in Q4 2025.

The weaker quarterly performance was mainly due to lower revenues amid seasonal factors, as the quarter fully coincided with Ramadan and Eid Al-Fitr.

Profitability was also pressured by higher operating costs, driven by the launch of new specialized services.

Total shareholders’ equity (after minority interest) stood at SAR 1.89 billion as of March 31, 2026, up from SAR 1.78 billion a year earlier.

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