This growth is attributed to the 20.9% year-on-year growth in the revenues of the pharmaceutical products segment during the current quarter compared to the corresponding quarter of the previous year.

This contributed to offsetting the decline in revenues from the medical services segment, which resulted from a slowdown in patient traffic due to the extended summer holiday compared to the previous year.

This decrease in net profit is primarily attributable to the following:

1) The gross profit for the current quarter decreased to 83.03 million Saudi Riyals compared to 96.05 million Saudi Riyals in the corresponding quarter of the previous year. This was a result of the rise in employee costs and operating expenses associated with the Group’s strategy to expand its services.

2) General and administrative expenses increased by 5.07 million Saudi Riyals during the current quarter compared to the corresponding quarter of the previous year, which also resulted from the Group’s efforts to expand its services.

3) An expected credit loss provision of 8.53 million Saudi Riyals was recorded during Q3 2025, compared to 0.34 million Saudi Riyals during the corresponding quarter of the previous year. This is due to delays in collections from some of the company’s major clients.

4) The finance income for the current quarter decreased to 0.68 million Saudi Riyals compared to 3.72 million Saudi Riyals in the corresponding quarter of the previous year. This is attributed to a reduction in the cash balance and and the acceleration of construction works for Al-Hammadi Hospital Al-Olaya.

This is compared to 298.24 million Saudi Riyals in the second quarter of 2025. This revenue decline during the third quarter, compared to the second quarter of the same year, is attributed to a decrease in the number of inpatient and outpatient visits.

The decline in net profit during the current quarter is mainly attributed to the decrease in revenues and the increase in cost of revenues compared to the previous quarter.

1) Increase in medical services sector revenues resulting from the improvement of new contract terms concluded with some clients.

2) Increase in revenues from the pharmaceutical products segment of the subsidiaries.

The company achieved a net profit margin of 21.0%, compared to 31.4% during the first nine months of the previous year.

The decline in net profit during the current nine-month period primarily reflects the impact of recording a non-recurring gain of 55.27 million Saudi Riyals from the sale of a plot of land in Al Rayyan district, Riyadh, during the comparable period of the previous year (2024), in addition to the following factors:

1) The stability of the gross profit for the current period at 272.53 million Saudi Riyals compared to 272.85 million Saudi Riyals for the same period of the previous year, despite the 7.7% increase in revenues during the current period. This is attributed to the rise in staff costs and operating expenses associated with the Group’s direction to expand its services.

2) General and administrative expenses increased by 6.67 million Saudi Riyals and selling and marketing expenses increased by 2.76 million Saudi Riyals during the current period compared to the corresponding period last year, in parallel with the Group’s efforts to expand its services.

3) The provision for expected credit losses increased to 19.11 million Saudi Riyals during the first nine months of 2025, compared to a reversal of a provision amounting to 3.84 million Saudi Riyals during the comparable period last year. This is due to delays in collecting certain receivables from some of the company’s major clients.

4) Other income decreased by 4.04 million Saudi Riyals during the current period compared to the comparable period last year.