Dallah Healthcare Co. announces its Interim Financial results for the Period Ending on 2025-09-30 ( Nine Months )

The acquisition of Al Salam Medical Services Company, owner of Dallah Al-Khobar Hospital, and Al Ahsa Medical Services Company, owner of Dallah Al-Ahsa Hospital , on March 23, 2025, had a positive impact on the increase in revenues. Total revenue for the two hospitals in the current quarter recorded approximately SAR 186 million, amounting to about 87% of the total revenue increase.

Dallah Al-Khobar Hospital and Dallah Al-Ahsa Hospital saw a surge in revenue under Dallah Health's management. Their revenues rose by approximately SAR 58 million, a 45% increase in the current quarter compared to the same quarter of the previous year (note that revenues for the same quarter of the previous year for the two hospitals are not included in Dallah Health's revenues as they precede the acquisition date).

The revenue contribution of the two acquired hospitals is expected to significantly exceed the previously announced SAR 500 million during the entire year of 2025 (starting from the acquisition date of March 23, 2025), and this growth is expected to continue at high rates in the following years with the increasing operating rates of the two hospitals, especially Dallah Al-Khobar Hospital Hospital. As noted in previous disclosures, the acquisition of the two hospitals contributed a 37% increase in the group's bed capacity with the addition of 424 beds (274 beds in Dallah Al-Ahsa Hospital and 150 beds in operation in Dallah Al-Khoba Hospital). This percentage will increase to 65% when Dallah Al-Khobar Hospital is fully operational with a capacity of 475 beds. This will bring the group's bed capacity to more than 1,900 beds, and a total of 2,560 beds when beds in its associate companies are accounted for.

The group's existing medical facilities prior to the acquisition also achieved a SAR 41 million growth in revenue for the third quarter of 2025 compared to the same quarter of the previous year, while sales from the pharma distribution sector (which is a separated sector from the hospitals) declined by around SAR 14 million due to delays in certain tenders in the current quarter..

- Increased revenues for the third quarter of 2025, which led to a 17.8% increase in gross profit or SAR 58 million, compared to the same quarter of the previous year.

- Following the acquisition of Al Salam Medical Services Company, the Company was able to renegotiate the terms of a long-term Murabaha financing agreement and reduce the Murabaha rate, resulting in a remeasurement profit of SAR 29.5 million recorded in the third quarter of 2025.

- Following its acquisition of Dallah Al Khobar Hospital on March 23, 2025, Dallah Health was able to reduce the hospital's losses, with net losses decreasing by SAR 44 million, or 95%, compared to the same quarter of the previous year (excluding the positive impact of the aforementioned loan remeasurement gains). This sharp decline in losses at Dallah Al Khobar Hospital is attributed to substantial growth in patient visits and improved operational efficiency at the hospital, which is still in its early stages of operation. (It should be noted that Dallah Al Khobar Hospital's losses for the same quarter of the previous year are not included in Dallah Healthcare's profits as they predate the acquisition)

Net profit before interest, depreciation, amortization, and zakat increased by 9.7% in the third quarter of 2025 to SAR 223 million, compared to SAR 203 million in the same quarter of the previous year, an increase of SAR 20 million.

The acquisition of Al Salam Medical Services Company, owner of Dallah Al-Khobar Hospital, and Al Ahsa Medical Services Company, owner of Dallah Al-Ahsa Hospital , on March 23, 2025, continued to support the Company’s record revenues. Total revenues for the two hospitals in the current quarter amounted to approximately SAR 186 million compared to SAR 176 million in the previous quarter, an increase of SAR 10 million or 5.6%.

The group's existing medical facilities prior to the acquisition also achieved a SAR 5 million revenue growth for the third quarter of 2025, while sales in the pharma distribution sector (which is a separated sector from the hospitals) declined by around SAR 16 million in the current quarter compared to the previous quarter as a result of delays in launching some tenders during the current period.

- Despite revenues remaining stable in the current quarter compared to the previous quarter, the Company achieved a 1.3% increase in gross profit, resulting in a rise in the gross profit margin from 35.4% to approximately 35.9%.

- Following the acquisition of Al Salam Medical Services Company, the Company renegotiated the terms of a long-term Murabaha financing agreement and reduced the Murabaha rate, leading to a remeasurement gain of SAR 29.5 million, recorded in the third quarter of 2025.

- After acquiring Dallah Al-Khobar Hospital on March 23, 2025, the Company managed to significantly reduce the hospital's losses. The hospital’s net losses for the current quarter of 2025 decreased by SAR 20 million, or 90%, compared to the previous quarter (excluding the positive impact of the aforementioned loan remeasurement gain). This sharp reduction in losses at Dallah Al-Khobar is attributed to substantial growth in patient visits and improved operational efficiency at the hospital, which is still in its early stages of operation.

The acquisition of Al Salam Medical Services Company, owner of Dallah Al-Khobar Hospital, and Al Ahsa Medical Services Company, owner of Dallah Al-Ahsa Hospital , on March 23, 2025, had a positive impact on the increase in revenues, with the total revenues of the two hospitals for the current period amounting to approximately SAR 375 million, or 67% of the overall revenue increase.

Dallah Al-Khobar Hospital and Dallah Al-Ahsa Hospital saw a surge in revenue under Dallah Health's management. Their revenues increased by approximately SAR 159 million, a 49% increase, during the current period compared to the same period last year (note that the hospitals' revenues for the same period last year are not included in Dallah Healthcare's revenues as they precede the acquisition date).

The group's existing medical facilities prior to the acquisition also achieved revenue growth of SAR 191 million compared to the same period last year, while sales in the pharma distribution sector (which is a separated sector from the hospitals) declined by around SAR 7 million in the current quarter compared to the same period last year as a result of delays in launching some tenders during the current period..

- Increased revenues for the period of 2025, which led to a 15.3% increase in gross profit to SAR 1,054 million, compared to SAR 914 million for the same period last year, an increase of SAR 140 million. Operating profit for the period of 2025 also improved by 8.6%, reaching SAR 490 million, compared to SAR 452 million for the same period last year; a SAR 39 million increase.

The Company achieved profits of SAR 51 million in the first quarter of 2025 through land that was contributed as an in-kind contribution to a real estate fund. The Company also concluded its zakat file review until 2023 in the second quarter of 2025, resulting in a reversal of provisions of SAR 12.5 million recorded in that quarter. Following the acquisition of Al Salam Medical Services Company, the Company also managed to renegotiate the terms of a long-term Murabaha financing agreement and reduced the Murabaha rate, leading to a remeasurement gain of SAR 29.5 million, recorded in the third quarter of 2025.

- Following the acquisition of Dallah Al-Khobar Hospital on 23 March 2025 up until 20 September 2025, the Company managed to significantly reduce the hospital's net losses by 73% or SAR 68 million during the current period compared to the same period in 2024 (excluding the positive impact of the aforementioned loan remeasurement gain). This sharp reduction in losses at Dallah Al-Khobar is attributed to substantial growth in patient visits and improved operational efficiency at the hospital, which is still in its early stages of operation. (It should be noted that Dallah Al-Khobar Hospital's losses for the same period last year are not included in Dallah Health's profits as they precede the acquisition date.)

Net profit before interest, depreciation, amortization, and zakat for the period rose by 17% to SAR 685 million, compared to SAR 585 million in the same period last year, an increase of SAR 100 million.