Riyadh, Saudi Arabia: Dr. Sulaiman Habib Medical Services Group (“HMG”), Saudi Arabia’s largest private medical services provider, has announced its financial results for the first half of 2022.

Revenues for the first half of 2022: the revenues increased by 16.22% for the first half of 2022 reaching SAR 4,004.87 million, with an increase of SAR 558.88 million as compared to SAR 3,445.99 million in the similar period of the previous year, as a result of the growth in all group segments.

Net Income for the first half of 2022 increased by 22.38% to reach SAR 788.64 million, with an improved net income margin reaching 19.69% of revenue compared to 18.70% for the similar period of the previous year. Net Income has improved, driven by the revenue growth and the increase in the number of patients and the increase in occupancy ratios for both inpatient beds and outpatient clinics.

Dr. Sulaiman Al Habib, Chairman of the Board of Directors at HMG, commented: “We have achieved strong results in the first half of 2022 as we continue to pursue our growth strategy, underpinned by key pillars, to grow the number of patients we serve and enhance the quality of services we provide, while maintaining the positive momentum and sustainability of our business and accelerating innovation and increase efficiencies across the Group”.

Also he added: “In the hospitals segment, our expansion plans remain on track with the new hospital projects underway in Riyadh, Jeddah, Al Kharj, Madinah, and Tabuk. Furthermore, The Medical Centers expansions are in progress as per the construction plan for the six new facilities taking place”.

Dr. Sulaiman Al Habib also pointed out: “Our commitment to healthcare excellence is reflected in our ongoing drive to developing and operating state-of-the-art medical facilities and providing innovative healthcare services to create value for our patients and positively impact our stakeholders and our society. This was demonstrated in the two initiatives launched in the first half of 2022 to provide promising and equal opportunities for all Saudi youth”.

Dr. Sulaiman Al Habib also added: “The first is the launch of the largest scholarship program for Saudi physicians in line with the Custodian of Two Holy Mosques Scholarship Program Strategy and the ambitious goals of Vision 2030. The program aims to develop the capabilities of Saudi youth and raise the quality of the healthcare system in the Kingdom while strengthening the research and innovation system and raising its global competitiveness. The program will provide promising and equal opportunities for male and female doctors to join international fellowship programs. The second is the launch of the Himma Engineering program, the first-of-its kind in the region, designed to offer fresh graduate Saudi engineers the opportunity to experience engineering best practices within the Group’s projects”.

Dr. Sulaiman Al Habib concluded: Moving forward we will continue to prioritise our foundational commitment to medical education continuous development to meet the highest international standards in healthcare services.”

Highlights: For the period ended 30 June 2022

  • HMG announced its plan to construct and operate a new hospital in Tabuk city.
  • HMG Launched of the largest scholarship program for physicians.
  • HMG Launched “Himma” Engineering program to qualify and employ newly graduated engineers.
  • HMG signed the memorandum of understanding (MoU) with the Ministry of Health and Direct Investment Fund of the Republic of Uzbekistan.
  • Signed a memorandum of cooperation between HMG and Dubai Corporation for Ambulances to Advance Medical Emergency Services.
  • Hulool Al Sahaba for IT & Communication Company, a subsidiary of HMG, signed a cooperation agreement with Lean Business Services to link hospitals and insurance companies through the "NPHIES" insurance services platform.
  • Flow Medical Company, a subsidiary of HMG, signed a memorandum of understanding with King Saud Medical City to provide technical and engineering consultancy services in the field of healthcare technology solutions.

· +260 million interactions via HMG App.

Summary Financials

 

 

Statement of Position

(SAR million)

 

As of 30 June 2021

 

As of 30 June 2022

Current Assets

3,877.37

4,360.13

Investment in subsidiaries & Associates

42.44

178.08

Investments in debt instruments – Sukuk

-

150.00

Property and Equipment

6,107.29

7,164.18

Total Assets

10,027.10

11,852.39

Current Liabilities

1,778.29

2,240.32

Non-Current Liabilities

2,970.87

3,813.07

Shareholders’ Equity

5,096.82

5,593.87

Non-controlling interests

181.12

205.13

Total Liabilities and Shareholder Equity

10,027.10

11,852.39

 

Income Statement

(SAR million)

For the six months ended

(First half of the year)

 

 

 

In 30 June 2021

 

 2022

In 30 June 2022

Revenue

3,445.99

4,004.87

Cost of revenue

(2,345.56)

(2,675.43)

Gross profit

1,100.43

1,329.44

Selling and marketing expenses

(100.61)

(162.30)

G&A expenses

(310.46)

(330.31)

Operating income

689.36

836.83

Other income, net

37.23

56.14

Share in net income of associates

5.56

10.69

Finance charges

(19.43)

(19.84)

EBT and before non-controlling interests

712.72

883.82

Zakat

(64.26)

(78.09)

Income before non-controlling interests

648.46

805.73

Non-controlling interests

(4.06)

(17.09)

Net income*

644.40

788.64

*Attributable to Equity holders of the Parent

 

 

 

 

Cash Flow Statement

(SAR million)

For the six months ended

(First half of the year)

 

 

In 30 June 2021

 

 

In 30 June 2022

Net cash from operating activities

1,102.96

1,174.06

Net cash used in investing activities

(587.36)

(911.04)

Net cash from financing activities

(367.71)

(121.05)

Cash and cash equivalents at the beginning of the period

2,339.26

2,643.83

Cash and cash equivalents at the end of the period

2,487.15

2,785.80

-Ends-

About HMG

Dr. Sulaiman Al-Habib Medical Services Group (HMG) is a private integrated healthcare provider for more than

25 years with a track record for developing and operating healthcare facilities, pharmacies, and associated services in Saudi Arabia and the GCC with more than 22 medical facilities and 17 pharmacies in Saudi Arabia and the UAE.

HMG is a GCC leader in healthcare solutions, technology and systems. HMG offers comprehensive healthcare that is patient centric and supported by investment in first-class human capital, medical research, education and training. HMG consistently achieves industry-leading satisfaction rates through its specialized healthcare services.

HMG is listed on Saudi Exchange Market (Tadawul) under symbol: SULAIMAN ALHABIB: 4013.

Investor Relations & Media Enquiries
Ziyad Abdulrahman Al Dahami
Dr. Sulaiman Al Habib Medical Services Group
Email: Ziyad.AlDahami@drsulaimanalhabib.com
P.O. Box 301578
Riyadh 11372, Kingdom of Saudi Arabia www.hmg.com