“Middle East Healthcare” announces substantial revenue and net profit growth for the Q2 of 2025
“Middle East Healthcare Company” (Saudi German Health), which operates a network of hospitals and polyclinics in seven major cities across the Kingdom of Saudi Arabia (Jeddah, Asir, Riyadh, Medinah, Hail, Dammam, and Mekkah), announced its preliminary financial results for the second quarter ending 30 June 2025, achieving a net profit of SAR 64 million, implying a 47% year-on-year growth, excluding a SAR 20 million gain on the sale of non-recurring land in the same period. This performance reflects a significant improvement in operational efficiency and a reduction in financing costs due to an improved debt structure.
The reported net profit for the second quarter of this year reached SAR 64 million, compared to SAR 63 million in the same period last year (including non-recurring gains from the sale of land).
Net profit growth was driven by an 11% increase in revenues to SAR 791 million, driven by increased inpatient admissions, increased outpatient visits, and a growing number of surgical procedures. This growth was also fueled by the SAR 47 million contract to operate the Mina II Emergency Hospital during the 2025 Hajj season, along with the expansion of the Dammam Hospital's bed capacity from 150 to 300 beds.
The company recorded a 10% growth in gross profit to SAR 308 million, while maintaining a stable gross profit margin of 38.9%.
For the first half of 2025, the company achieved a 109% jump in net profit to SAR 224 million, while revenues grew by 9% to SAR 1.525 billion.
This performance is attributed to the growth of operations in the Makkah, Dammam, and Hail regions, the enhancement of competitiveness by its hospitals in Asir and Riyadh receiving the prestigious Magnet accreditation for nursing excellence, and the ongoing implementation of the SAR 400 million expansion project at Jeddah Hospital, which will increase its capacity by more than 190 beds upon completion.
The company's management confirmed that these results reflect the strength of its operating model and its ability to achieve sustainable growth in a highly competitive market. It noted that the company continues to invest in geographic expansion and operational efficiency, while remaining committed to providing world-class healthcare.
The general assembly approved the board of directors’ recommendation to distribute a cash dividends of SAR 0.50 per share (equivalent to 5% of the nominal value) for the fiscal year 2024.
The management added that the company plans to continue its expansion and investment in subspecialties, with a focus on improving the patient experience and enhancing operational efficiency.
Notably, the Saudi German Health's vision revolves around providing integrated medical solutions through its extensive network of hospitals and specialized centers, including diagnostic services (laboratories and radiology) and treatment (health rehabilitation and specialized clinics), with a focus on investing in medical infrastructure through land acquisition and the development of healthcare facilities. Investors can contact the Investment Relations team at president4@sghgroup.net for more details.
