‎Overview of Tadawul-listed healthcare firms Q2 2022 performance, bed capacity plans

‎Overview of Tadawul-listed healthcare firms Q2 2022 performance, bed capacity plans

The operating segments of the Saudi Exchange (Tadawul)-listed healthcare providers witnessed a positive performance in the second quarter of 2022, driven by the continued revenue growth of hospitals segment to record levels for the eighth quarter in a row.

The hospitals segment hit SAR 3.5 billion in Q2 2022, an increase of 17% year-on-year (YoY) and 2% quarter-on-quarter (QoQ).

The segment’s revenue growth followed the improvement in in-patient occupancy as number of visits at outpatient clinics increased. In addition, the companies reported expansions, as well as a continued increase in the patient base.

However, pharmaceuticals segment sales fell slightly to SAR 648.4 million on lower segment sales in most companies (Dallah, Care, Al Hammadi).

The following table shows the two segments’ revenues since Q2 2021:

In terms of consolidated financial results, profit margins saw a minor improvement YoY as direct costs continued to increase due to incurring operational losses in conjunction with expansions and operation of new hospitals.

The sector's profit margins were expected to decline in the short-term due to the start of new hospital branches, however, margins will benefit positively in the long run thanks to revenue growth driven by increased demand for healthcare services.

The sector's profit margins are expected to continue on a