SMC profit up 10% to SAR 185.2M in 2024; Q4 at SAR 26.2 M

Specialized Medical Co. (SMC), a healthcare and pharmaceutical services provider at SMC Hospitals (a company currently undergoing an initial public offering (IPO) on Tadawul), said net profit rose 10% to SAR 185.2 million in 2024, compared to SAR 168.7 a year earlier.

The profit increase was attributed to a 5% year-on-year (YoY) rise in total revenues due to growth in the medical services and pharmaceuticals segments, which account for the largest portion of total revenues at 81% and 18%, respectively.

However, revenue of the food and beverages segment fell 26% YoY, which had only a minimal impact due to its small share of total revenues, representing just 2% by the end of the period.

SMC reported a 1% YoY decrease in the cost of revenue ratio, which contributed to an increase in the gross profit margin (GPM) to 27%, compared to 26% in the same period last year.

It also witnessed a 10% annual increase in operating income to SAR 237.1 million. Despite higher administrative and marketing expenses, the company reported a stable operating margin of 16% for both the current and comparative periods.

Earnings before interest, taxes, Zakat, depreciation, and amortization (EBITDA) expanded 7%, reaching SAR 324.6 million during the quarter, compared to SAR 302.3 million a year ago.

Meanwhile, Zakat provisions and financing costs (FCs) rose due to a higher short-term loan portfolio, which reached SAR 490.53 million.

In contrast, long-term loans fell to SAR 143.87 million. Lease liabilities also declined to SAR 225.52 million.

Meanwhile, medical services revenue accounted for 81% of the current year’s revenues, totaling SAR 1,163.4 million.

Total shareholders' equity (no minority interest) declined to SAR 827.1 million by the end of Dec. 31, 2024, compared to SAR 845.05 million in the same period a year earlier.

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