‎“Mahara” profits surge to SR154 mln during 2022, by 6.3%‎

Maharah Human Resources Company revealed an increase in net profit after zakat and tax during the year ending on December 31, 2022 to 154 million riyals, compared to 145 million riyals in the previous year, by 6.3%. This came after today’s announcement of the annual financial results ending in 2022- 12-31.

The operational profit amounted to SR108.2 million during the year ending on December 31, 2022, compared to 146 million riyals in the previous year, a decline of 26%.

The total shareholders’ equity “without minority rights” amounted to 599 million riyals in the current year, compared to 572.4 million riyals in the previous year, an increase of 4.6%.

Earnings per share in the current year reached 4.11 riyals, compared to 3.86 riyals in the previous year.

– The consolidated net income attributable to the company’s shareholders increased during the year ending on 12/31/2022 by 6% compared to the previous year, mainly due to:

– The company’s revenues increased by 28% compared to the previous year, as the revenues of the business and individual sectors increased by 20% and 34%, respectively, compared to the previous year, as a result of the increase in the average number of the workforce by 19%, in addition to the revenues generated from signing contracts A strategy in the business sector, in addition to the revenues generated from other sectors developed and acquired sectors.

– The main activity of the company represented in the business and individuals sectors witnessed an increase in gross profit by 14% compared to the previous year, while the gross profit was negatively affected by the results of the facilities, logistics services and home medical care sectors, which are in the construction and restructuring phase to achieve the company Net increase in gross profit by 4.24% compared to the previous year.

– The associate companies whose acquisition was completed during the third quarter of this year (Care Shield Holding Company, Health Systems Company) achieved profits. The company’s share of their business results amounted to 56 million riyals during the current year, which we expect to continue its positive results on the company’s profitability in the coming periods

The company’s investments in financial instruments through profit or loss achieved profits during the current year, with an increase of 1.9 million riyals compared to the previous year.

On the other hand, general and administrative expenses increased by 32.7 million riyals compared to the previous year, mainly due to the consolidation of the financial statements with the acquired companies, in addition to some non-recurring items.

Marketing expenses increased by 3.3 million riyals compared to the previous year as a result of the increase in advertising expenses, in addition to the expenses of subsidiaries during the current year.

– The expense of provision for doubtful debts amounted to 8.4 million riyals, according to the expected credit losses model.

Financing costs increased by 9.1 million riyals during the current year compared to the previous year, which is mainly due to the company obtaining long-term loans to finance the acquisitions that took place during the current year.

Additional information:

The company’s revenues in the fourth quarter of the current year amounted to 474 million riyals, which represents an increase of 35% compared to the same quarter of the previous year, as the revenues of the business and individual sectors increased by 43% and 23%, respectively, compared to the same quarter of the previous year as a result of the increase in the average number of the workforce, in addition to the revenues generated from signing strategic contracts in the business sector.

– The sale and purchase agreement for companies in which ownership shares were acquired during the year (Care Shield Holding Company – 41.36%, Health Systems Company – 40%) included a clause that includes the company’s right to its share in the business results of those companies as of the beginning of the year 2022 ,.

During the current year 2022, the company acquired a share representing 19.78% of the ownership shares of Kaby Information Technology Company (a closed Saudi joint stock company), whose capital is 200 million riyals, through its participation in an in-kind share that represents the entire share of its previous ownership in the Blovo Company. Ltd., and just as the purpose of this investment is to keep it for medium to long-term strategic purposes, the company has classified the investment at fair value through comprehensive income.

– The total property rights related to shareholders in the parent company for the current year amounted to 599 million riyals (572 million riyals 2021).