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Abdulaziz Alkathiry CEO of Maharah Human Resources Co.
The acquisitions made by Maharah Human Resources Co. in the associates, Care Shield Holding Co. and Saudi Medical Systems Co. in Q3 2022 were positively reflected on that period, as the nine-month results of both firms were consolidated with Maharah’s results, CEO Abdulaziz Alkathiry told Argaam in an exclusive interview.
The third quarter of 2023 witnessed higher finance costs due to those acquisitions, which primarily weighed on the company’s net income when compared to Q3 2022.
The company’s Q3 results were dragged by the resident services in the individuals segment, as its revenues fell due to the application of a ceiling on prices for services provided in this segment by the Ministry of Human Resources and Social Development starting in February 2023, in addition to the suspension of recruitment of Indonesian nationals and recruiting alternative nationalities instead, most of which are of African nationality, for which the price of recruiting services is 50% lower than that of Indonesian nationality, which negatively affected revenues and reduced profit margins of this segment in general, according to Alkathiry.
He indicated that the individuals segment and the performance of some subsidiaries contributed to putting pressure on gross profit margins during the current period, adding that, however, such impact is limited, and a rise in gross profit margins is likely by improving the results of the individuals segment and subsidiaries in accordance with the initiatives that have been implemented, in addition to spurring activities and operations of subsidiaries.
All of the company’s activities and segments, such as the business segment, Saudis souring, and hourly services, are performing strongly during this year, said the CEO.
Alkathiry also expected this positive performance to continue, backed by strong demand in most segments, especially contracting, industrial, hospitality and retail, and the government segments.
Furthermore, the labor number in the business segment rose by 16% year-on-year through several strategic contracts signed with clients, while work is underway to correct the course in resident services by months by diversifying recruitment from several new countries in order to raise their market share, he added.
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