Dallah Healthcare's revenue tops SAR 1B for first time ever, net profit jumps 21% in H1 2025

Dallah Healthcare Co. announced its results for the period ended June 30, 2025, reporting record-breaking figures, particularly in revenue, as the company broke the SAR 1 billion mark in quarterly revenues for the first time. This was driven by enhanced operational capacity of existing facilities and new acquisitions, namely the acquisition of Dallah Al Khobar Hospital (formerly Al Salam Hospital) and Dallah Al Ahsa Hospital (formerly Al Ahsa Hospital).

Q2 2025 Results

The Group's revenue rose by 38.8%, or SAR 297 million, in Q2 2025 to SAR 1,062 million, compared to SAR 765 million in the same quarter of the previous year. The acquisitions of Dallah Al Khobar and Dallah Al Ahsa Hospitals contributed SAR 176 million of this growth, accounting for 59% of the total revenue increase.

Dallah Al Khobar and Dallah Al Ahsa saw a surge in revenues after Dallah Healthcare assumed management following the acquisitions on March 23, 2025. Their combined revenue increased by SAR 73 million, or 72% year-on-year (YoY) in Q2 2025. 

The acquisition added 424 beds to the Group's capacity (274 beds in Dallah Al Ahsa and 150 operational beds in Dallah Al Khobar), boosting total capacity by 37%. This will grow to 65% upon full operation of Dallah Al Khobar with 475 beds. This will bring the Group’s capacity to over 1,900 beds—or 2,560 beds when including affiliate companies. The acquisition is expected to add more than SAR 500 million in revenue for full-year 2025 (from March 23 onward), with strong growth expected in the following years, particularly as Dallah Al Khobar ramps up. 

Other existing medical facilities also saw revenue growth of SAR 121 million, or 15.8% YoY in Q2 2025, driven by higher patient volumes and greater specialization. 

Net profit attributable to shareholders increased by 11.1%, or SAR 12 million, to SAR 124 million in Q2 2025, from SAR 112 million in Q2 2024. Earnings per share rose to SAR 1.23, compared to SAR 1.15, supported by a 26.3% rise in gross profit to SAR 376 million from SAR 298 million—an increase of SAR 78 million. Operating profit rose by 9.9% to SAR 155 million, compared to SAR 141 million a year ago. The company also reversed SAR 12.5 million in provisions after closing its Zakat file until 2023.

Since acquiring Dallah Al Khobar on March 23, 2025, the company significantly reduced the hospital’s net losses, which declined by 61% to SAR 18 million in Q2 2025, driven by increased visits and improved efficiency. (The Q2 2024 losses of this hospital are not included in Dallah’s previous results, as the acquisition had not occurred yet.) 

EBITDA rose by 23.4%, or SAR 43 million, in Q2 2025 to SAR 229 million, compared to SAR 186 million in Q2 2024.  

First-Half Results 

Dallah Healthcare recorded a 22.3%, or SAR 346 million increase in H1 2025 revenue, reaching SAR 1,895 million compared to SAR 1,549 million in H1 2024. Acquisitions contributed SAR 189 million to this growth, while existing facilities saw revenue growth of SAR 157 million, or 10.1% YoY.  

Net profit attributable to shareholders for H1 2025 rose by 21.1% to SAR 280 million, compared to SAR 231 million a year earlier—an increase of SAR 49 million. EPS increased to SAR 2.81 from SAR 2.37. Gross profit rose by 13.9%, or SAR 82 million, to SAR 673 million versus SAR 591 million. Operating profit improved by 14.7% to SAR 333 million from SAR 290 million. This growth was achieved despite a SAR 23 million net loss at Dallah Al Khobar, still in early operational stages. 

EBITDA for the period rose by 21.3%, or SAR 81 million, to SAR 462 million, from SAR 381 million.  

Chairman’s Commentary and Outlook  

Chairman Tarek Alkasabi said the company is progressing steadily, driven by a well-defined growth and expansion strategy. "This is clearly reflected in the revenue growth, which exceeded SAR 1 billion for the first time on a quarterly basis," he noted. 

Alkasabi added that if the current momentum continues, the group’s annual revenues are expected to surpass SAR 4 billion this year. 

The group continues to focus on enhancing shareholders' equity through improved operational efficiency and strategic expansion projects, such as the recent acquisition of Dallah Al Khobar and Dallah AlAhsa hospitals in the Eastern Province.  

"With these additions, the group now operates eight hospitals, including affiliated companies, covering the Central, Eastern, and Western regions of the Kingdom," the Chairman said. 

He further explained that the company’s management is committed to linking revenue growth with cost optimization, thereby increasing net profit attributable to shareholders year-on-year. 

Alkasabi affirmed that the trust of patients in the Dallah Healthcare brand and the quality of its services has always been a key driver of performance improvement. This was evident in the strong performance of Dallah Al Khobar Hospital immediately after the acquisition and management transition, with a significant increase in patient visits.  

"This, along with operational efficiency improvements, led to a 61% reduction in losses for the current quarter compared to the same quarter of the previous year," the Chairman said. 

He noted that Dallah Al Ahsa Hospital delivered satisfactory profits during the current quarter, benefiting from Dallah Healthcare’s management.  

Both hospitals are expected to contribute over SAR 500 million in revenues between the acquisition date and the end of 2025. Their ongoing contribution is anticipated to further enhance the group’s profitability in the coming years, particularly as Dallah Al Khobar Hospital approaches the breakeven point, supported by planned upgrades and expansions, including new departments, clinics, and additional beds. 

Alkasabi also highlighted the strong performance of the group’s other medical facilities, which achieved a 15.8% revenue growth in the current quarter compared to the same period in 2024.  

"The company is currently constructing a new hospital in the Al-Arid district, north of Riyadh, in addition to ongoing enhancements and expansions across existing facilities," the Chairman noted.  

He emphasized that the company’s presence across the Central, Eastern, and Western regions—through its subsidiaries and associates—will further strengthen its reputable brand known for reliability, with a continued focus on delivering the highest standards of medical care to patients. 

Dallah Healthcare is listed on the Saudi Exchange’s Main Market, with symbol 4004, and ISIN: SA135G51UI10. It is one of the leading healthcare service providers in Saudi Arabia.