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19-Oct-2016

Middle East Healthcare 3Q16 earnings flattish  Y-o-Y; revenue growth offset by escalating SG&A

Middle East Healthcare Company (MEAHCO) (4009.SE) reported its preliminary 3Q16 results, which came in flattish Y-o-Y (+1.4%) at SAR92mn, and despite 8% revenue growth. Revenue growth came on the back of higher outpatient traffic and prices. However, it was offset by higher selling and marketing expenses due to an increase in provisions for rejections, bad and doubtful debt. Meanwhile, gross profit for the quarter grew 9% Y-o-Y to SAR199mn, while operating profit grew a slower 2%. (Company disclosure)

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