SMC: Malqa Clinics, ISFC poised to turn profitable in 2027

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, said the company is on track to achieve revenue of between SAR 1.6 billion and SAR 1.7 billion in 2026. He expects the contribution of newly added o

Hani Charani, CFO of Specialized Medical Co. (SMC), said the company is on track to achieve revenue of between SAR 1.6 billion and SAR 1.7 billion in 2026. He expects the contribution of newly added operating capacity to revenue to continue growing in Q4 2026, which typically sees a seasonal increase in patient numbers.

In an interview with Argaam, Charani added that the company expects SMC Clinics in the Malqa district and its food and catering subsidiary ISFC to turn profitable in 2027. He also expects the profitability margins of the new outpatient clinics at SMC 1 and SMC 2 hospitals to continue improving gradually, supported by higher utilization rates.

Malqa Clinics is still in the early stages of operation, with 17 clinics currently operating out of a total capacity of 35. The company has signed agreements with all insurance companies except one and expects the center's revenue to continue growing over the next two quarters, according to the official.

Charani also said the new outpatient clinics added at SMC 1 and SMC 2 hospitals in 2025 continue to gradually increase their utilization rates. Outpatient clinic utilization improved compared with the same quarter last year, and he expects this improvement to continue in the coming months, supporting profitability margins.

Commenting on the company's Q3 2026 financial results, Charani said revenue growth of 4.8% to SAR 401.1 million was driven by higher patient numbers, alongside the expansion of the company's clinic network to 355 clinics, compared with 307 clinics in the same period last year. However, net profit declined 37% to SAR 41.9 million due to higher operating costs and provisions, as well as lower other income.

He explained that higher direct costs were associated with the gradual ramp-up of Malqa Clinics and the new outpatient capacity at SMC 1 and SMC 2 hospitals, in addition to the expansion of the food and catering subsidiary ISFC.

The increase in expected credit loss provisions and lower other income…

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