Al Hammadi Holding · TADAWUL:4007
Al Hammadi — 9M 2024 Earnings Presentation
27 slides from Al Hammadi's earnings presentation, Nov 1, 2024
Slide 1: Results Presentation 9M 2024
Al Hammadi Holding Results Presentation 9M 2024
Slide 2: Table of Contents
Table of Contents I II III IV About Al Hammadi Market 9M 2024 Appendix Holding Overview Results Overview
Slide 3: About Al Hammadi Holding
About Al Hammadi Holding
Slide 4: Al Hammadi is an integrated healthcare company and premier hospital operator
Al Hammadi is an integrated healthcare company and premier hospital operator providing world-class healthcare services to hundreds of thousands of local and foreign residents… An Integrated Healthcare Company 82%1 18%1 The company currently operates two hospitals in the Saudi Arabian Al Hammadi also
Slide 5: Riyadh coverage across the Saudi capital
The Company enjoys widespread coverage spanning the entire Saudi capital Al Narjis Hospital2 4 Al Nuzha Hospital 3 Al Hammadi boasts two operational state-of-the-art facilities, Al Nuzha and Al Suwaidi hospitals, strategically located in the heart Riyadh Olaya Hospital1 of Riyadh, with a third hospi
Slide 6: Al Hammadi operates two premier hospitals in the heart of Riyadh
Al Hammadi operates two premier hospitals in the heart of Riyadh providing a wide range of world-class services to thousands of patients Al Nuzha Hospital Al Suwaidi Hospital Located in the northeast neighborhood of Riyadh, Al Nuzha Launched in 2015 and located in southwest Riyadh, Al Suwaidi Hospit
Slide 7: Growth plans to add rooms and 240 clinics by 2028
The Group’s ambitious growth plans will see it add 400 rooms and 240 clinics by 2028 to capitalize on the city’s growing healthcare demand Al Suwaidi Hospital Olaya Hospital Al Narjis Hospital Al Hammadi is looking to Originally launched in 1985, The Group plans to open its leverage Al Suwaidi’s spa
Slide 8: Market Overview
Market Overview
Slide 9: Health Sector Transformation Plan and Vision 2030 healthcare targets
Guided by the Health Sector Transformation Plan, Saudi Arabia is developing a healthcare sector that is more comprehensive, effective, and integrated Some of Vision 2030 key healthcare targets Boost access to healthcare and Localize medical and Increase life expectancy Digitize healthcare insurance
Slide 10: Riyadh at the center of Vision 2030
Riyadh stands at the center of Vision 2030 as the city works to become a regional hub of business, culture and entertainment… Riyadh stands as Vision 2030’s poster child, aiming to become a regional hub for Business Culture Entertainment Riyadh’s population and average incomes are rapidly expanding…
Slide 11: Rising demand for high-quality healthcare and hospital bed supply gap
Rapid movement of people and capital to the city is driving up demand for high-quality healthcare, opening up the door to vast growth opportunities for the private sector Rising population, income, insurance penetration levels is putting pressure on healthcare providers with the supply gap for hospi
Slide 12: 9M 2024 Results Overview
9M 2024 Results Overview
Slide 13: 9M 2024 Results Snapshot
9M 2024 Results Snapshot Al Hammadi reported improving financial and operational performance in 9M 2024, supported by a robust third quarter which saw significant improvements in patient volumes following the strategic price adjustments rolled out at the start of the year. Revenue Gross Profit Opera
Slide 14: 9M 2024 Operational Review
9M 2024 Operational Review Despite the year-on-year decline in patient volumes booked in 9M 2024, both inpatient and outpatient volumes have shown steady year-on-year and quarter-on-quarter growth during the third quarter of the year, showcasing strong underlying demand for the Group’s offering. Inp
Slide 15: 9M 2024 Consolidated Financial Performance (I/III)
9M 2024 Consolidated Financial Performance (I/III) Despite seeing consolidated revenue declining marginally year-on-year, Al Hammadi’s performance highlighted several positive trends. It is especially important to highlight that excluding MoH patients, the Group posted a solid 2% y-o-y expansion in
Slide 16: 9M 2024 Consolidated Financial Performance (II/III)
9M 2024 Consolidated Financial Performance (II/III) The Group recorded operating margin improvements supported by a decline in SG&A expenses as the Group-wide efforts to optimise costs continue to deliver the desired results. The increase in cost of revenue reflects increased medical staff salaries,
Slide 17: 9M 2024 Consolidated Financial Performance (III/III)
9M 2024 Consolidated Financial Performance (III/III) Improved operating profitability coupled with higher finance income resulting from an increase in the Group’s cash balances during the third quarter of the year saw net profit post a 10% year-on-year expansion with a four-percentage point rise in
Slide 18: Al Nuzha Hospital: 9M 2024 Performance
Al Nuzha Hospital: 9M 2024 Performance Al Nuzha reported lower revenues primarily driven by the slowdown in volumes at the outpatient segment. The year-on- year increase in inpatient volumes indicates the anticipated normalization in patient traffic post-price adjustments. It is important to note th
Slide 19: Al Suwaidi Hospital: 9M 2024 Performance
Al Suwaidi Hospital: 9M 2024 Performance Al Suwaidi reported year-on-year decline in revenue during the first nine months of the year, on the back of lower volumes and MoH revenue. It is worth highlighting that the impact of changing MoH regulations is set to begin phasing out in Q4 2024 with volume
Slide 20: Pharmaceuticals: 9M 2024 Performance Review
Pharmaceuticals: 9M 2024 Performance Review Al Hammadi’s pharmaceutical sales contributed 18% of consolidated revenues, recording SAR 147 million for 9M 2024, a 15% y-o-y decline. The segment’s top-line was weighed down by lower footfall across both hospitals, coupled with lower sales at Pharma Serv
Slide 21: Appendix
Appendix
Slide 22: 9M 2024 Consolidated Income Statement
9M 2024 Consolidated Income Statement SAR mn Q3 2023 Q3 2024 Y-o-Y Change 9M 2023 9M 2024 Y-o-Y Change Revenue 297.8 290.6 (2.4%) 873.1 831.1 (4.8%) Cost of revenue (184.7) (194.5) 5.3% (546.4) (558.2) 2.2% Gross Profit 113.1 96.1 (15.1%) 326.7 272.9 (16.5%) GPM 38.0% 33.1% -4.9 pts. 37.4% 32.8% -4.
Slide 23: 9M 2024 Consolidated Balance Sheet
9M 2024 Consolidated Balance Sheet SAR mn 31 December 2023 30 September 2024 ASSETS Non-current assets Property and equipment 1,658.6 1,539.3 Intangible assets and goodwill 23.7 26.9 Investment in associates 128.4 132.2 Total non-current assets 1,810.7 1,698.4 Current Assets Inventories 56.6 61.6 Ot
Slide 24: 9M 2024 Consolidated Statement of Cash Flow
9M 2024 Consolidated Statement of Cash Flow SAR mn 30 September 2023 30 September 2024 OPERATING ACTIVITIES Net profit 238.1 261.0 Adjustments to reconcile net profit to cash flow - - Depreciation of property and equipment and right of use assets 72.7 72.6 Amortization of intangible assets 2.7 0.4 L
Slide 25: Sudair Pharmaceutical Company launched in 2014
Sudair Pharmaceutical Company (SPC) was launched in 2014 with the goal of supporting the government’s ambitions for pharmaceutical and health security Over the last nine years, SPC has developed a comprehensive offering …all produced out of SPC’s state-of-the-art manufacturing facility covering a br
Slide 26: Saudi Vision 2030 foundations for a stronger nation
Saudi Arabia has embarked on a transformative journey setting the foundations for a stronger, more sustainable nation… Saudi Vision 2030 is predicated on three key pillars and sets out ambitious targets for the Kingdom 50% 80 years Share of non-oil GDP by Life expectancy by 2030 2030 10% USD 1.9 Tri
Slide 27: Transforming the healthcare sector is at the heart of Vision 2030
Transforming the country’s healthcare sector is at the heart of Vision 2030 to ensure the country is ready to accommodate changing demand patterns and a shifting demographic profile… Saudi Arabia is home to a large, young, and rapidly growing population… …with a strong prevalence of non-communicable