Fakeeh Healthcare Group’s revenue increased by 24% in the first half of 2024, and its net profit increased significantly by 39% year-on-year.

Dr. Soliman Abdul Qader Fakeeh Hospital Company and its subsidiaries (referred to as Fakeeh Healthcare Group, the “Company” or the “Group”), one of the leading companies in the provision of healthcare services with integrated academic capabilities and listed on the Saudi Market Index Shares (TASI) (Trading Code: 4017, International Code SA562GSHUOH7) announced its financial results for the six months ended June 30, 2024, with revenue reaching SAR 1,334.4 million in the first half of 2024, an increase of 24.1% year-on-year. Net profit for the same period reached SAR 103.6 million, an increase of 39.4% year-on-year compared to the adjusted net profit of SAR 74.3 million in the first half of last year, which also resulted in a 90 basis point increase in the net profit margin to 7.8%, compared to the adjusted profit margin of 6.9% in the first half of 2023. The growth recorded by the Group during the period was driven by an increase in the number of patients receiving paid services and an increase in the average implied revenue per patient across the Group’s facilities due to an improved business mix and growth in the contribution of operating and management contracts. In the first half of 2024, the group received 829,377 patients (excluding free visits and follow-ups), a year-on-year increase of 12.2%, which was achieved against the backdrop of Riyadh Hospital continuing to strengthen its operational operations and increase the number of patients. The operating speed of the group’s medical centers.

In this context, Dr. Mazen Suleiman Fakih, Group Chairman, commented: “In the first six months of 2024, the Group’s performance continued its upward trend, with revenue growth of more than 24% in the first half of the year and reinforcing our strong performance during the period, driven by increased demand for our hospitals and affiliated centers, and an increase in the number of patients choosing Fakih Group due to the superior quality and service of our healthcare services. The level of excellence in healthcare services associated with the Fakih Group name, through continued investment and expansion, with the opening of new facilities, including Riyadh Hospital, has increased demand for the Group, thereby improving the Group’s performance during the period. In addition, the management and operating model adopted by the Group has further enhanced its value while maintaining an efficient cost structure.”

“Following the successful completion of the Group’s IPO in the second quarter of 2024, the Group was able to improve its capital structure, paying down nearly SAR 1 billion of debt, in addition to increasing its cash balance to SAR 789 million. The Group has also made significant progress in its equipment to achieve its medium-term growth strategy, including doubling the number of beds and clinics by fiscal 2028. The Group’s hospital in the city, as well as the successful launch of the Fakeeh Optical project and the opening of Fakeeh Family Healthcare branches in multiple locations, are committed to providing diversified and comprehensive healthcare services.”

By June 2024, the Group has made considerable progress in completing preparations for the opening of the Municipal Hospital, including the appointment of professionals in all key departments, the completion of all infrastructure, equipment and final decoration work, and plans to complete the decoration work and hand over the hospital by the end of 2024.

The Group also announced the opening of the Neurology, Rehabilitation and Post-Acute Hospital (HEAL) in Jeddah, a 200-bed state-of-the-art hospital that replaces the previously planned Al Hamra Post-Acute Hospital. The new hospital will include an area dedicated to neurology and inpatient rehabilitation for patients with addiction and mental disorders, a physical rehabilitation clinic for outpatients, and a recovery area. Unlike the previously planned Al Hamra Post-Acute Care Hospital, which was a renovation of an existing building, the custom-designed HEAL Hospital design will help improve the delivery of these specialized medical services, thereby strengthening our strategic objectives and market position.

As for existing assets, Fakeeh Group continues to receive well-deserved recognition for its leadership in healthcare services, winning several awards and honors during the same period, most notably Jeddah Hospital’s third consecutive “World’s Best Hospital 2024” by Newsweek and its sixth consecutive JCI accreditation in June 2024. Riyadh Hospital received the Nursing Continuing Professional Development certification in May 2024 and the Food Safety Management Certificate (ISO) 2018:22000 in July 2024.

You can view and download the full report of Fakeeh Healthcare Group’s business results for the first half of 2024 and management’s analysis of the company’s performance via the following link: ar.fakeeh.care.