Maharah CEO eyes previous growth rates on reopening international flights

Logo of Maharah Human Resources Co.

Maharah Human Resources Co.’s liquidity reached an exceptional level, with customers’ debts currently at SAR 162 million, compared to SAR 185 million in Q4 2020 and SAR 231 million by 2019-end, CEO Abdulkarim Alnujaidi told an investor conference.

He added that the high level of liquidity boosts the company's ability to raise its operational efficiency and financial solvency.

The CEO added that 2020 and Q1 2021 proved a test for the company’s business model’s ability to remain strong and ensure business sustainability in the presence of great opportunities to deal with the challenges created by the crisis.

The improvement in financial results continued in Q1 2021, despite the impact of the COVID-19 pandemic on all segments, he added.

Alnujaidi indicated that the suspension of international flights led to a decline in the average number of the workforce, which contributed to lower revenues and put pressure on profit margins year-on-year (YoY) in Q1 2021, which preceded the pandemic.

The company is optimistic about 2021, backed by the workforce retention and growth targets’ achievement, as it hopes to return to previous levels of growth upon the reopening of international flights.

“Challenges still exist, as the company is waiting for the opening of access channels for the workforce from source countries, and any improvement in this aspect will directly impact the company’s performance and business growth,” the CEO said.

The challenges include the current changes in the regulatory environment, whether in housing the workforce or applying precautionary measures.

Thus, the company is working to diversify the source countries of the workforce, focusing on the African continent and some new countries.

Alnujaidi pointed out that Maharah’s revenues from electronic applications rose, accounting for 33% of the retail segment’s revenues in Q1 2021.

He stated that the Q1 performance reflects the achievement of the company’s plan in the technical and digital transformation.

Maharah’s officials indicated that the process of launching the “Saudi and expatriate workforce portal” is in its final stages, expecting it will be announced in the coming period.

They stated that the corporate segment represented 73% of total revenues, while the retail segment accounted for 27%.

At the corporate level, the company targets different sectors, such as industry, operation, retail, hospitality, commercial, and healthcare, while at the retail level, it aims to provide full-time and part-time services. According to data compiled by Argaam, Maharah Human Resources Co.'s net profit after Zakat and tax declined 45% to SAR 31.3 million in Q1 2021 from SAR 57.3 million in the same period last year.