| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is |
Net profit for the quarter ended 31 March 2023 increased by 31.4% year-on-year (y-o-y) to reach SAR 81.4 million during Q1 2023. Net profit growth was mainly driven by the following:
• Revenue: which recorded SAR 298.6 million for Q1 2023, representing a 19.0% y-o-y increase compared to the first three months of 2022. Top-line growth during the quarter was supported by a 22.2% y-o-y increase in revenues generated by the Company’s medcial services segment, in addition to an 7.8% rise in pharmaceutical product segment supported by sales increase from Al Hammadi’s in-house pharmacies.
• Gross profit: which rose to SAR 120.4 million during Q1 2023, increasing 25.3% y-o-y from SAR 96.1 in Q1 2022 and yielding a gross profit margin of 40.3% against 38.3% in the same period of the previous year. Improved gross profitability was further supported by increased operational efficiencies across both of the Group’s medical facilities.
• Expected credit loss provision: which declined to reach SAR 5.9 million in the three-month period from SAR 7.5 million one year earlier. The decline is attributable, for the most part, to the Company’s continued efforts to improve collection rates.
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| The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is |
Net profit increased by 11.3% quarter-on-quarter (q-o-q) to SAR 81.4 million compared to SAR 73.2 million in Q4 2022. Net profit growth during the period was mainly driven by the following:
• General, administrative and selling expenses: which recorded SAR 27.3 million, down from SAR 33.3 million in the previous quarter, reflecting a 18.1% q-o-q decline. General, administrative and selling expenses as percentage of revenues declined 0.6 point to 9.1% during the three-month period, from 9.7% during Q4 2022.
• Expected credit loss provision: which declined by 68.6% q-o-q to book SAR 5.9 million during Q1 2023, compared to SAR 18.7 million in the previous quarter. Declining expected credit loss provision reflects improved collection rates across the Company’s facilities.
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