Fakeeh Care Group Reports 1H-2024 Revenue Growth of 24% y-o-y with a Strong 39% y-o-y Increase in Net Profit

(MENAFN- Global Advertising) Dr Soliman Abdel Kader Fakeeh Hospital Company and its Subsidiaries (“Fakeeh Care Group”, “FCG”, “Fakeeh”, the “Company” or the “Group”), a leading fully integrated academic healthcare provider listed on TASI (SYMBOL: 4017 and ISIN code SA562GSHUOH7), announces today its financial results for the six-month period ended 30 June 2024, reporting revenues of SAR 1,334.4 million in 1H-2024, an increase of 24.1% year-over-year (y-o-y). Net profit for the six-month period recorded SAR 103.6 million in 1H-2024, up 39.4% y-o-y compared to the 1H-2023 adjusted1 figure of SAR 74.3 million, with a 90bps increase in net profit margin to 7.8% versus an adjusted1 6.9% for 1H-2023.

Growth during the period was driven by a higher number of billable patients served, increased implied average revenue per patient across the Group driven by improved business mix, and a growing contribution from the Group’s Operate and Manage (O&M) contracts. During 1H-2024, Fakeeh served a total of 829,377 billable patients (excluding free follow-up visits), up by 12.2% y-o-y on account of the continued ramp-up of operations at Riyadh Hospital and increased utilization across the Group’s medical centres.

Commenting on the Group’s performance, FCG’s President Dr. Mazen Soliman Fakeeh said: “Halfway into 2024, Fakeeh has maintained a solid growth trajectory with revenue growth of over 24% in 1H-2024 and robust bottom-line profitability. Our strong performance during the six-month period continued to be driven by higher footfall at our hospitals and centres, with a growing number of patients choosing Fakeeh for its quality healthcare service and superior clinical outcomes that have become synonymous with our brand. Our results were also driven by continued investments and expansion with new facilities, including our latest Riyadh Hospital which broadened the Group’s catchment area into the Kingdom’s largest population centre. Meanwhile, our O&M business model is delivering incremental value to the Group, while also maintaining an efficient cost profile.”

“Following the conclusion of Fakeeh’s IPO in Q2-2024, the Group has optimized its capital structure, settling nearly one billion riyals in debt obligations and increasing its cash balance to SAR 789 million, affording it the flexibility and firepower to pursue and deliver on its medium-term growth strategy, including doubling its operational capacity in terms of number of beds and clinics by FY-2028. We have already made significant progress on our Madinah Hospital, as well as the successful rollout of our Fakeeh Vision and Home Healthcare branches in multiple locations as we seek to build a more diversified and comprehensive healthcare services offering.”

As of June 2024, Fakeeh made significant progress towards launching DSFH Madinah, including recruiting across all major functions, completion of all infrastructure, equipment and finishing works, with a targeted turnkey delivery of the facility by the end of 2024.

The Group also announces the introduction of HEAL Neuroscience, Rehabilitation and Post Acute Care Hospital (HEAL), a state-of-the-art, 200-bed facility in Jeddah, replacing the previously planned AL Hamra Post Acute Care Hospital (“Al Hamra PAC”). This new hospital will feature a dedicated neuroscience zone, in-patient rehabilitation for addiction and mental disorders, out-patient physical rehabilitation clinics, and a retirement zone. Unlike converting an existing building as was previously planned with Al Hamra PAC, HEAL’s purpose-built design will optimize the delivery of these specialized healthcare services, enhancing our strategic objectives and market position.

Meanwhile at the Group’s existing assets, Fakeeh continued to be recognized as a leading healthcare provider having secured numerous awards and accreditations, including DSFH Jeddah’s recognition by Newsweek’s 2024 “World’s Best Hospitals Jan 2024” for the third consecutive year, and earning JCI accreditation for the sixth consecutive time in June 2024. Meanwhile, DFSH Riyadh is now accredited for Nursing Continuing Professional Development in May 2024, and has received the ISO 22000:2018 certification for Food Safety Management in July 2024.

Fakeeh Care Group’s complete 1H-2024 Earnings Release with management’s analysis of the Company’s performance is available for download on en.fakeeh.care.

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About Fakeeh Care Group
Established in 1978 by the late Dr. Soliman Fakeeh, the Fakeeh Care Group stands as a pioneer in integrated healthcare services in Saudi Arabia. Our comprehensive healthcare offering includes our core healthcare services ranging from ambulatory care to secondary and tertiary care, supported by Emergency Medical Services and Fakeeh Home Healthcare. Additionally, our offerings are enhanced by our industry-leading academic healthcare programs. In 2022, after a period of significant growth in our home city of Jeddah, the Group embarked on a Kingdom-wide expansion strategy to bring our well proven hub-and-spoke model and medical support services to major cities across Saudi Arabia.

In June 2024, Fakeeh Care Group successfully concluded its initial public offering (IPO) on the Tadawul. The IPO raised gross proceeds of SAR 2.9 billion (US$ 764 million) for the Company and the Selling Shareholders of which SAR 1.7 billion will be used to support and accelerate the Group’s growth strategy.

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