Middle East Healthcare Company's profits dropped 41.17 percent to 20.16 million riyals at the end of the third quarter of 2018 compared to a profit of 64.88 million riyals achieved during the same period last year.
Gross profit for the period ended 2018-09-30 reached SR 389 million compared to SAR 452 million for the same period last year, a decrease of 13.97%.
Earnings per share were SAR 1.54 compared to SR 2.57 for the same period last year.
The company said: The reason for the decline in net profit during the current quarter compared to the same quarter of the previous year to: –
The revenues were negatively affected by the drop in the number of outpatient patients, in addition to the relatively slow progress in Hail Hospital and Beverly Clinics in Jeddah, which was expected by the company's management.
2. Start-up expenses for operating the Beverly Clinics in Jeddah, which affected operating and non-operating expenses during the current quarter, which were pre-estimated according to the Company's operating plan
3- Increasing the cost of sales and administrative expenses due to the increase in labor fees. Salary costs have also risen due to the new Beverly Clinics in Jeddah and outpatient clinics at the Saudi-German Hospital in Asir.
4 – Increase the depreciation expenses resulting from renovations and additions in medical equipment and also start work in the outpatient clinic tower Asir and Beverly clinics in Jeddah.
5. Increase in financing expenses due to increase in bank loans.