‎“Maharah Human Resources” profits up to SR36.4 mln during ‎Q1, by 47%‎

Maharah Human Resources revealed an increase in net profit after zakat and tax in the first quarter to 36.4 million riyals, compared to 24.8 million riyals in the same quarter of last year, by 47%. This came after today’s announcement of the preliminary financial results for the period ending in 2023- 03-31 (three months).

The operational profit amounted to 30.1 million riyals in the first quarter, compared to 22.9 million riyals in the same quarter of the previous year, an increase of 31.4%.

The total shareholders’ equity “without minority rights” amounted to 598 million riyals in the current period, compared to 522.2 million riyals in the same period last year, an increase of 14.5%.

Earnings per share in the current period reached 0.97 riyals, compared to 0.66 riyals in the same period last year.

– The net income attributable to the company’s shareholders for the first quarter of 2023 increased by 47% compared to the same quarter of the previous year, mainly due to:

The company’s revenues increased by 21% compared to the same quarter of the previous year as a result of the increase in the average number of the workforce by 19% in general, as business sector revenues increased by 37% compared to the same quarter of the previous year, supported by the revenues achieved as a result of contracts The strategy in the business sector and the increase in the average numbers, while the revenues of the individuals sector decreased by 4% compared to the same quarter of the previous year as a result of applying the price cap for services in accordance with the regulations and legislation issued, which affected the decrease in the average price for the workforce.

The main activity of the company, represented in the business and individuals sectors, witnessed an increase in gross profit by 21% compared to the same quarter of the previous year, despite the impact of the profit margin on the individual sector during the period as a result of the decline in revenues in the sector, while the gross profit was negatively affected by the results of The sectors of utilities, logistics and home medical care, which are in the construction and restructuring phase, so that the company achieved a net increase in gross profit by 16% compared to the same quarter of the previous year.

A decrease in general and administrative expenses by 1 million riyals compared to the same quarter of the previous year.

The associate companies whose acquisition was completed during the third quarter of the previous year (Care Shield Holding Company, Health Systems Company) achieved profits. The company’s share of their business results amounted to 15 million riyals during the first quarter of 2023, which We expect its positive results to continue on the company’s profitability in the coming periods

On the other hand, financing costs amounted to 10.2 million riyals during the current quarter, which is mainly due to the company obtaining long-term loans to finance the acquisitions that took place during the third quarter of 2022.

The profits of the company’s investments in financial instruments decreased through profit or loss in the current quarter by 3.7 million riyals compared to the same quarter of the previous year, due to the reduction of cash investments and its use as part of financing the acquisitions that took place in the previous year.

Consolidated net income attributable to the company’s shareholders for the first quarter of the current year decreased by 9% compared to the previous quarter, mainly due to:

• A decrease in the company’s revenues in general by 2% compared to the previous quarter, as the revenues of the individual sector decreased by 7% compared to the previous quarter as a result of applying the price ceiling for services in accordance with the issued regulations and legislations, which affected the decrease in the average price to the workforce with Maintaining business sector revenues at the same level compared to the previous quarter. Revenues from the facilities management sector also decreased by 11% compared to the previous quarter, as the company is restructuring its business, which will improve its results during the coming periods.

The decrease in the profits of associate companies whose acquisition was completed during the third quarter of the previous year (Care Shield Holding Company, Health Systems Company) by 6.3 million riyals during the current quarter compared to the previous quarter.

The increase in financing costs by 3 million riyals during the current quarter compared to the previous quarter as a result of the high rates of borrowing profits during the period, with the continuation of the loan amounts at the same level, which were obtained as long-term loans to finance the acquisitions that took place during the previous year.

On the other hand, general and administrative expenses decreased by 7.2 million riyals during the current quarter compared to the previous quarter, due to the presence of some non-recurring items in the previous quarter.

The expense of provision for doubtful debts decreased by 7.3 million riyals compared to the previous quarter as a result of improved collection performance, according to the expected credit losses model.