Saudi German Health posts SAR 67.8M profit in H1 2026, SAR 34.4M in Q2

Middle East Healthcare Co. (Saudi German Health) reported a net profit of SAR 67.8 million in the first half of 2026, down from SAR 186.1 million in the same period a year earlier.

The profit decline was attributed to the restatement of the prior-year comparative figures to recognize a SAR 50 million expected credit loss provision (ECL). This was in addition to a non-recurring SAR 114 million capital gain from the sale of an undeveloped plot of land in Riyadh recorded in H1 2026.

Gross profit also declined due to higher operating staff costs amid the expansion of specialized clinical services, while the launch of associate company Al-Sobh in Q4 2025 reduced net profit by SAR 13.8 million.

Marketing and advertising expenses also increased as part of a targeted strategy to launch and promote new specialized medical and surgical services.

These factors were partly offset by higher revenue, driven by the introduction and expansion of new revenue streams, including specialized medical care and surgical services. Additional service lines also increased patient volumes and broadened the range of services offered by the group’s hospitals. Revenue was further supported by higher inpatient admissions and outpatient visits, growth in surgical procedures, and an improvement in patients’ average length of stay (ALOS).

In Q2 2026, Saudi German Health’s net profit rose by 73% to SAR 34.4 million from SAR 19.8 million in Q2 2025.

The profit increase was driven by higher revenue, lower general and administrative (G&A) expenses, restatement of the prior-year comparative figures to recognize a SAR 50 million ECL provision, lower financing costs and a decline in ECL provision on trade receivables.

Quarter-on-quarter, the company reported a 2.6% profit increase from SAR 33.47 million in Q1 2026.

Shareholders’ equity, after minority interest, increased to SAR 1.54 billion as of June 30, 2026, from SAR 1.52 billion a year earlier.

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