Riyadh – Mubasher: National Medical Care Co. reported a 27.1% year-on-year profit retreat in 2018.

The Saudi firm’s net profits, after taxes and zakat, reached SAR 62.18 million ($16.58 million) last year, compared to SAR 85.3 million ($22.75 million) in 2017, according to a statement to the Saudi Stock Exchange (Tadawul) on Sunday.

Revenues fell 10.7% to SAR 763.8 million in 2018 from SAR 855.08 million a year earlier.

The retreat in net profits was ascribed to a 10.7% year-on-year decline in revenues and increased zakat charges on the back of higher zakat base, along with re-evaluating and writing-off an enterprise resource planning (ERP) system, previously under implementation, with a value of SAR 2.2 million.

The profit drop was also attributed to lower numbers of inpatients and outpatients; this resulted in reducing net revenues as well as carrying out a non-recurring settlement with an insurance company for SAR 7.5 million during the third quarter of 2018.

The gross profit margin fell to 21.8% in 2018 from 22.9% in the previous year due to higher provisions and depreciation.

On the other hand, EBITDA margin rose to 21.1% last year, compared to 20.1% in 2017.

The Saudi firm’s board of directors recommended distributing 10% of the share’s nominal value, or SAR 1 per share, with a total amount of SAR 44.850 million as cash dividends for 2018.

During the first nine months of 2018, National Medical Care’s profits retreated 7.6%, logging SAR 57.31 million from SAR 62.04 million in the year-ago period.

By 01:46 pm Saudi time on Sunday, National Medical Care’s stock fell 1.29% to SAR 45.85.