      Reported net income: SAR25.6mn, +65% Y-o-Y, +13% Q-o-Q
      Revenues: SAR207mn, +2% Y-o-Y, -8% Q-o-Q
      Gross profit: SAR51.7mn, +26% Y-o-Y, -6% Q-o-Q
      Operating income: SAR32.1mn, +91% Y-o-Y, -7% Q-o-Q
 
CARE posted its preliminary 1Q18 results, with earnings coming in at SAR25.6mn, up 65% Y-o-Y (+13% Q-o-Q), mainly on stronger margins supported by lower cost of sales and SG&A expenses. Net margin came in at 12.4% vs. 7.7% in 1Q17. 
 
Revenue was almost flat (+2% Y-o-Y) at SAR207mn. Also, the company had signed two LT care contracts from the Ministry of National Guards (SAR256mn contract for a duration of three years and SAR66mn contract for one year) in 1H17 and a SAR300mn annual contract with GOSI (for three years in Jan 2018), that also likely supported revenue growth.
 
Gross profit for the quarter came in at SAR51.7mn, up 26% Y-o-Y (-6% Q-o-Q) with gross margin expanding 5pp to 25.0% which the company attributed to lower cost of sales (-4% Y-o-Y). Meanwhile, operating margin widened a stronger 8.6pp to 15.5%, with operating profit came in at SAR32.1mn (+91% Y-o-Y) as SG&A costs were trimmed 19% Y-o-Y, as the company continued to focus on lowering staff costs.