Middle East Healthcare Q1 2026 Net Profit SAR 25.7M, Revenue Up 4.3%
Middle East Healthcare Company (4009) announced Q1 2026 net profit of SAR 25.7 million, a sharp 83.95% decline YoY, primarily due to a non-recurring capital gain of SAR 114 million from land sale in the prior year. Revenue increased 4.315% to SAR 765.23 million, driven by growth in patient visits and subspecialty services.
Key Numbers
Middle East Healthcare Company (Saudi Stock Exchange: 4009) reported its interim financial results for the three months ended March 31, 2026, posting a net profit of SAR 25.7 million, down 83.95% year-on-year. The decline was mainly attributed to the prior year including a non-recurring capital gain of SAR 114 million from land sale. Revenue rose 4.315% YoY to SAR 765.23 million, supported by increased inpatient and outpatient visits and the ramp-up of subspecialty services.
Key Financial Results
| Item | Current Quarter (SAR M) | Same Quarter Last Year (SAR M) | Change % | Previous Quarter (SAR M) | Change % |
|---|---|---|---|---|---|
| Revenue | 765.23 | 733.57 | +4.315% | 808.77 | -5.383% |
| Net Profit | 25.7 | 159.9 (estimated) | -83.95% | 37.8 (estimated) | -31.992% |
| Gross Profit | 254.27 | 279.98 | -9.182% | 277 | -8.2% |
*Note: Prior period figures estimated based on disclosed percentages.
Highlights from the Statement
- Quarterly Revenue Decline: Revenue fell 5.383% QoQ due to seasonality from Ramadan and Eid Al-Fitr falling entirely within the current quarter.
- Quarterly Net Profit Drop: Net profit decreased 31.992% QoQ, driven by seasonal revenue decline and higher operating costs from new subspecialty services.
- Auditor's Note: The external auditor issued an unmodified opinion with an emphasis of matter paragraph regarding related party transactions (Note 16).
- Shareholders' Equity: Increased 6.268% to SAR 1,898.17 million.
- IFRS 18 Adoption: The company early adopted IFRS 18.
- Associate Investment: Holds a 22.41% stake in an associate that began operations in Q4 2025, with a share of loss of SAR 7 million in Q1 2026.
Guidance
No specific guidance was provided in the earnings release.
Impact on the Stock
No immediate stock reaction has been reported. The stock remains under review for the impact of the results.
What This Means for Investors
The Q1 results reflect the impact of non-recurring items (land sale) and increased operating costs from expansion. While revenue growth is positive, the decline in profitability warrants monitoring of cost trends and operational stability.
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