Fakeeh Care Group Reports Strong Financial Results for 9M-2024
Dr Soliman Abdel Kader Fakeeh Hospital Company and its Subsidiaries (“Fakeeh Care Group”, “FCG”, “Fakeeh Care”, the “Company” or the “Group”), a leading fully integrated academic healthcare provider listed on TASI (SYMBOL: 4017 and ISIN code SA562GSHUOH7), announced on Thursday its financial results for the nine-month period ended on 30 September 2024, reporting revenue of SR2 billion, up by a solid 23.1% year-on-year. Net profit increased by a strong 49.4% y-o-y to SR 195.3 million in 9M-2024 compared to the adjusted figure of SR 130.7 million in 9M-2023, with net profit margin expanding c.170 basis points (bps) to 9.5% versus an adjusted 7.9% in 9M-2023.
Growth and Performance
Growth during the period was primarily driven by higher patient footfall, an increased number of surgeries and deliveries, improved average implied revenue per patient, and a full nine-month contribution from the NEOM Hospital O&M contract. During 9M-2024, total cases served, including inpatient admissions and outpatient visits, reached c.1.3 million as of 30 September 2024, excluding free follow-up visits, up by 12.9% y-o-y as Riyadh Hospital continues to ramp-up operations and with increased activity across the Group’s outpatient clinics.
Comment from FCG’s President
Commenting on the Group’s performance, FCG’s President Dr. Mazen Soliman Fakeeh said: “Through the first nine months of 2024, Fakeeh Care has continued to deliver robust financial results with a strong revenue increase of 23.1% year-over-year to SR2 billion, reflecting consistent growth in patient volumes, a higher-value business mix, and an expanding contribution from our O&M business. Additionally, our Riyadh Hospital has been a significant contributor to our growth trajectory, with utilization reaching 71.3% as it ramps up towards full capacity, helping to drive improved cost efficiencies and margins. The increased footfall at our hospitals and centers demonstrates that more patients than ever are choosing us for our high standard of care and strong clinical outcomes.”
Future Plans and Expansion
“In line with our post-IPO strategy, we have maintained a strong capital structure, settling SR 1.2 billion in debt, which along with our cash generating abilities provides us with a robust financial position to continue our growth trajectory through targeted investments in expansion. Notably, our Madinah facility is on track for turnkey delivery by year-end, with infrastructure, equipment, and recruitment nearly complete—an essential milestone in our goal to enhance healthcare access across KSA. Additionally, we have committed SR 218 million this quarter in CAPEX spend through construction contracts and have signed framework agreements to mark the initial stages of further expansion; in line with our longer-term growth targets to double our bed capacity and education facilities by 2028.”
Integrated Healthcare Platform and Accreditations
During 9M-2024, Fakeeh also strengthened its integrated healthcare platform, achieving strong growth across all its business verticals. At the Healthcare and Medical-Related segments, Fakeeh Home Healthcare is now present in six major cities – with the latest two additions set to commence operations before year-end. Additionally, Fakeeh Emergency Medical Services grew significantly, with its fleet reaching 83 ambulances, supporting the Group’s hub-and-spoke model and serving national events. Meanwhile, Fakeeh Vision now operates 16 branches, with three more set to open by year-end, reinforcing Fakeeh’s role as a comprehensive healthcare provider. Finally at the Education segment, Fakeeh College enrolled 352 new students across its various programs in September 2024, bringing the total to 1,736 students.
Outlook and Growth Prospects
Dr. Mazen Soliman Fakeeh concluded by saying: “Looking ahead, we are confident in the Group’s growth prospects, supported by strong utilization trends, especially in Riyadh as we expand its capacity and range of services, and continued operational enhancements at Jeddah Hospital. Additionally, a stronger focus on complex care, the ongoing delivery on our O&M business strategy and its potential expansion, and a favorable macroeconomic environment in Saudi Arabia further underpin our optimism for Fakeeh Care Group.”
Fakeeh Care Group’s complete 9M-2024 Earnings Release with management’s analysis of the Company’s performance is available for download on en.fakeeh.care.
Established in 1978 by the late Dr. Soliman Fakeeh, the Fakeeh Care Group stands as a pioneer in integrated healthcare services in Saudi Arabia. The group’s comprehensive healthcare offering includes core healthcare services ranging from ambulatory care to secondary and tertiary care, supported by Emergency Medical Services and Fakeeh Home Healthcare. Additionally, the group’s offerings are enhanced by its industry-leading academic healthcare programs. In 2022, after a period of significant growth in its home city of Jeddah, the Group embarked on a Kingdom-wide expansion strategy to bring its well proven hub-and-spoke model and medical support services to major cities across Saudi Arabia.
In June 2024, Fakeeh Care Group successfully concluded its initial public offering (IPO) on the Tadawul. The IPO raised gross proceeds of SR 2.9 billion (US$ 764 million) for the company and the selling shareholders of which SR 1.7 billion will be used to support and accelerate the Group’s growth strategy.
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