On 2026-08-11 16:27:56 (Saudi Time), Middle East Healthcare Company (Saudi German Health) Sukuk(5019.SA)5019 announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ending 30 June 2026, sales/revenue increased 5.653% YoY to SAR 1,610.75 million (from SAR 1,524.56 million), driven by the successful introduction and expansion of new revenue streams including specialized medical care and surgical services, which boosted patient volumes, inpatient admissions, outpatient visits, and average length of stay (ALOS). However, net profit attributable to shareholders declined sharply by 63.561% YoY to SAR 67.82 million (from SAR 186.12 million), primarily because the prior-year comparative period included a one-off capital gain of SAR 114 million from the sale of an unutilized plot of land in Riyadh, and was restated to recognize an allowance for expected credit losses amounting to 50 million(currency not specified in original). Additional headwinds included a 10.68% decline in gross profit due to higher operational workforce costs tied to the expansion of specialized clinical services, a SAR 13.8 million negative impact from associate company Al Sobh commencing operations in Q4 2025, and increased marketing and advertising expenses to promote newly launched services.

Quarter-on-Quarter Performance Drivers

QoQ revenue rose 10.492% to SAR 845.52 million, driven by expanded specialized medical care and surgical services, growth in inpatient admissions and outpatient visits, and an improved case mix resulting in a higher average length of stay (ALOS). Net profit attributable to shareholders increased 2.629% QoQ to SAR 34.35 million, supported by revenue growth from new service streams and a reduction in general and administrative expenses through disciplined overhead cost controls. It is also noted that the previous quarter's comparative figures were restated following the exclusion of depreciation expenses amounting to SAR 7.8 million.

Other Items

The external auditor issued a qualified conclusion on the interim condensed consolidated financial statements for the six-month period ended 30 June 2026. As stated in the auditor's report, the basis for the qualified conclusion relates to the Group's restatement of certain comparative financial information as at and for the years ended 31 December 2024 and 31 December 2025 to correct identified prior-period errors, covering adjustments to property and equipment, depreciation expense, trade receivables, the related expected credit loss allowance, and retained earnings. The auditor noted that it was unable to obtain sufficient appropriate review evidence to evaluate certain elements of the restatement and its related effects on the comparative financial information, and consequently was unable to determine whether any further adjustments might have been necessary. An Emphasis of Matter paragraph was also included, drawing attention to Note 16 regarding transactions and balances with related parties provided by entities under common control. Additionally, the auditor noted as an Other Matter that the consolidated financial statements for the year ended 31 December 2025 were audited by a different auditor who expressed an unmodified opinion on 4 March 2026, and that the interim statements for the periods ended 30 June 2025 were reviewed by the same prior auditor who expressed an unmodified conclusion on 7 August 2025. In terms of prior-period errors, the Group identified misstatements of SAR 244 million affecting the year ended 31 December 2024 and SAR 184 million for the year ended 31 December 2025. Prior-year figures have also been reclassified following the adoption of IFRS 18. Total shareholders' equity (after deducting minority equity) stood at SAR 1,542.85 million as of the current period, compared to SAR 1,527.19 million in the same period of the prior year, representing a 1.025% increase.

Original announcement:

https://www.saudiexchange.sa/wps/portal/saudiexchange/newsandreports/issuer-news/issuer-announcements/issuer-announcements-details/?anId=97568&anCat=1&cs=4009&locale=ar

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