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TIBBIYAH ANNOUNCES HALF-YEAR 2024 RESULTS WITH RESILIENT MARGINS DESPITE SOFTENED PERFORMANCE
(MENAFN- Instinctif) Riyadh, Saudi Arabia, 01 September 2024: Arabian International Healthcare Holding Company (“Tibbiyah” or the “Company”, 9530 on the Saudi Exchange’s Nomu - parallel market), a leading integrated healthcare solutions provider in Saudi Arabia, announced its financial results for the six-month period ended 30 June 2024 (“H1 2024”).The company reported a decline in revenues and profitability compared to the same period last year (“H1 2023”), reflecting the impact of seasonality, and ongoing investments to counter early-stage scaling issues in new business ventures.
In H1 2024, the company navigated a mixed environment, driven by seasonality in its core segments, a normal part of its business cycle, and operational challenges in IHC. Strategic diversification of portfolio along with prudent cost management led to a 2.6 percentage point improvement in company-wide gross margins to 22.6%, partially offsetting the revenue decrease and demonstrating the company’s resilience.
The performance of the Medical Equipments Division (FMS) in H1 2024 was shaped by the cyclical and seasonal nature of its project-based business, which typically sees stronger activity in the second half of the year. The efficient execution of the backlog in H2 2023 left limited pipeline for H1 2024. Additionally, the completion of a major one-time project in H1 2023 set a high comparison base. Despite this, FMS is well-positioned, with strong H1 bidding activity and a growing share of private-sector orders, setting the stage for sustained momentum and stronger future results.
The Medical Supplies Division (Premma) demonstrated stability, by advancing its strategic portfolio expansion and reinforcing key supplier partnerships. The onboarding of new Chinese vendors last year has now progressed to the registration stage, enabling Premma to successfully participate in larger and additional bidding opportunities. This strategic move not only broadens Premma’s portfolio but also strengthens its competitive position in the market
IHC encountered challenges during H1 2024 due to competitive pressures and certain operational difficulties in key practices. The segment is taking steps to stabilize performance, focused on recruitment and service optimization. Additionally, the opening of a new branch this year in North Riyadh marks an important geographical expansion, positioning IHC for a stronger presence and enhanced offering.
Genalive, operationalized in December 2023, is focused on building its market presence. The business has also made strong progress in bidding for new contracts, positioning itself for strategic growth.
It is important to note that the one-off adjustments related to restatement of acquisition of Innovative Healthcare Company Holding Limited (IHC) from FY23 continued to impact comparability with H1 2023 results.
Mr. Wael Aref, Chief Financial Officer at Tibbiyah, commented:
“We maintained resilient margins in H1 2024 despite cyclical challenges and revenue decline. Our focus on strategic cost management has led to improved gross margins, reflecting the strength of our core operations. As we move forward, we remain committed to optimizing our operations and advancing our growth strategy to deliver sustained value to our shareholders.”
Following the recent resignation of the former CEO, the Board of Directors has approved the appointment of Mr. Yasir Khattab as the new CEO of Tibbiyah, effective September 1, 2024. Mr. Khattab brings a wealth of experience in the healthcare sector and is well-equipped to lead the company through its next phase of growth.
Yasir Khattab, Incoming Chief Executive Officer, stated:
“I am honored to take the helm at Tibbiyah at such a pivotal time. As we continue to build on our solid foundation, my focus will be on driving our strategic initiatives forward, ensuring we capitalize on emerging opportunities, and positioning ourselves as a leader in the healthcare sector in Saudi Arabia.”
In H1 2024, the company navigated a mixed environment, driven by seasonality in its core segments, a normal part of its business cycle, and operational challenges in IHC. Strategic diversification of portfolio along with prudent cost management led to a 2.6 percentage point improvement in company-wide gross margins to 22.6%, partially offsetting the revenue decrease and demonstrating the company’s resilience.
The performance of the Medical Equipments Division (FMS) in H1 2024 was shaped by the cyclical and seasonal nature of its project-based business, which typically sees stronger activity in the second half of the year. The efficient execution of the backlog in H2 2023 left limited pipeline for H1 2024. Additionally, the completion of a major one-time project in H1 2023 set a high comparison base. Despite this, FMS is well-positioned, with strong H1 bidding activity and a growing share of private-sector orders, setting the stage for sustained momentum and stronger future results.
The Medical Supplies Division (Premma) demonstrated stability, by advancing its strategic portfolio expansion and reinforcing key supplier partnerships. The onboarding of new Chinese vendors last year has now progressed to the registration stage, enabling Premma to successfully participate in larger and additional bidding opportunities. This strategic move not only broadens Premma’s portfolio but also strengthens its competitive position in the market
IHC encountered challenges during H1 2024 due to competitive pressures and certain operational difficulties in key practices. The segment is taking steps to stabilize performance, focused on recruitment and service optimization. Additionally, the opening of a new branch this year in North Riyadh marks an important geographical expansion, positioning IHC for a stronger presence and enhanced offering.
Genalive, operationalized in December 2023, is focused on building its market presence. The business has also made strong progress in bidding for new contracts, positioning itself for strategic growth.
It is important to note that the one-off adjustments related to restatement of acquisition of Innovative Healthcare Company Holding Limited (IHC) from FY23 continued to impact comparability with H1 2023 results.
Mr. Wael Aref, Chief Financial Officer at Tibbiyah, commented:
“We maintained resilient margins in H1 2024 despite cyclical challenges and revenue decline. Our focus on strategic cost management has led to improved gross margins, reflecting the strength of our core operations. As we move forward, we remain committed to optimizing our operations and advancing our growth strategy to deliver sustained value to our shareholders.”
Following the recent resignation of the former CEO, the Board of Directors has approved the appointment of Mr. Yasir Khattab as the new CEO of Tibbiyah, effective September 1, 2024. Mr. Khattab brings a wealth of experience in the healthcare sector and is well-equipped to lead the company through its next phase of growth.
Yasir Khattab, Incoming Chief Executive Officer, stated:
“I am honored to take the helm at Tibbiyah at such a pivotal time. As we continue to build on our solid foundation, my focus will be on driving our strategic initiatives forward, ensuring we capitalize on emerging opportunities, and positioning ourselves as a leader in the healthcare sector in Saudi Arabia.”
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