Riyadh – Mubasher: Dallah Healthcare on Tuesday reported a net profit of SAR 52 million ($13.87 million) for the fourth quarter of 2016, down 4.76% from SAR 54.6 million ($14.566 million) in the year-ago period.
Quarter-on-quarter, the company posted a profit decline of 14.89% from SAR 61.1 million, according to a filing to the Saudi Stock Exchange (Tadawul).
The Saudi healthcare company, however, achieved a 36.77% rise in net profits for the full-year 2016 of SAR 225.8 million, compared to 2015’s SAR 165.1 million.
Gross profit for 2016 also grew 31.86% to SAR 536.8 million, compared to the previous year’s SAR 407.1 million, according to the statement.
The year-on-year net profit decrease in Q4-16 was due to “charging some estimated provisions against the decline in value of intangible assets, collectability and inventories,” Dallah highlighted, adding that a rise in distribution expenses also contributed to the decline.
The drop in the last quarter of 2016 occurred, despite “the increase in revenues' volume due to the increase in number of inpatients and outpatients in addition to improvement in some contractual terms with the suppliers, and the increase in share in profits in affiliated companies,” the statement added.
As for the profit growth reported for the full-year 2016, Dallah attributed it to the rise in the number of inpatients and outpatients and, opening and operating of the North-Clinics’ Building with improvement of some contractual terms for services, which led to a rise in overall operating efficiency and positively reflected in the company's profitability.
“Other revenues increased after realising of gains of sale of some investments. Financial charges declined as a result of capitalising some charges relating to projects,” Dallah noted regarding its 12-month performance.
