National Medical Care Co. announces its Annual financial results for the period ending on 2018-12-31
| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 763,804 | 855,084 | -10.674 | ||
| Total Profit (Loss) | 166,510 | 195,402 | -14.785 | ||
| Profit (Loss) Operational | 88,426 | 103,773 | -14.789 | ||
| Net Profit (Loss) after Zakat and Tax | 62,182 | 85,296 | -27.098 | ||
| Total Comprehensive Income | 63,611 | 80,363 | -20.845 | ||
| Total Share Holders Equity (after deducting minority equity) | 996,865 | 985,625 | 1.14 | ||
| Profit (Loss) per Share | 1.39 | 1.9 | |||
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element List | Explanation |
|---|---|
| Reason for increase (decrease) in net profit for current year compared to last year | The decrease in net profit for the year compared to last year is due to the following;
1. Net revenue declined by 10.7% during 2018 compared to the previous year.
2. In line with market our medical facilities witnessed reduced inpatient and outpatient volumes resulting in drop in net revenue.
3. During the third quarter the Company carried out a non-recurring settlement with an insurance company for SR 7.5 million
4. The Company has reviewed provisions recorded against its medical claims with some of its government customers. As a result of this review the Company made additional net provision of SR 15 million against claims with these customers. These provisions were in excess of the routine provisions that the Company makes against its medical claims and receivables.
5. The gross profit margin reduced from 22.9% in 2017 to 21.8% for the year due to higher provisions and depreciation. EBITDA margin improved from 20.1% in the previous year to 21.1% in the current year.
6. The impact on net profit due to reduction in revenue and higher provisions has been partially offset by cost saving initiatives undertaken by the company.
7. An ERP system previously under implementation was re-evaluated and written off during the year amounting to SR 2.2 million.
8. Zakat charge for the year has increased due to higher zakat base for the year. |
| Type of the external auditor's opinion | Unmodified opinion |
| External auditor's report containing reservation | None |
| Reclassifications in annual financial results | Elements and notes of the comparatives Financial Statements have been reclassified and regrouped to meet with the applied accounting policies for the current year which have been prepared according to the International Financial Reporting Standards (IFRS) that are applied in the Kingdom of Saudi Arabia. |
| Additional Information | The gross receivables of the Company reduced by 24% from SR 694 million at the end of 2017 to SR 528 million at the end of 2018 due to improved collections. The cash and cash equivalents of the Company stand at SR 345 million as of 31 December, a 194% increase over the previous year end.
From January 1, 2018, the Company has adopted IFRS 9 (Financial Instruments) and IFRS 15 (Revenue from Contracts with Customers) with no material impact on the annual financial statements. For more information, please refer to notes 4, 9 and 16 in addition to note 24 (Effect of application of the new IFRS) in the note accompanying the consolidated financial statements. |
Comments