Maharah 9M 2021 net profit falls 32% to SAR 105.7 mln

Maharah Human Resources Co. posted a net profit after Zakat and tax of SAR 105.7 million for the nine-month period ended Sept. 30, 2021, a drop of 32% from SAR 154.8 million in the year-earlier period.

The profit decline was attributed to an 11% year-on-year (YoY) drop in revenue during the nine-month period, where the revenue from the corporate and individual segments decreased by 12% and 8% YoY to SAR 698 million and SAR 271 million, respectively.

Maharah also cited a 25% YoY decrease in gross profit during the same period due to the abovementioned decline in the revenues, the costs incurred by the company to apply the social distancing standards and precautionary measures, and increased recruitment costs due to the COVID-19 pandemic.

The company maintained general and administrative expenses at the same level, as it controlled these expenses, with a slight increase of SAR 0.9 million in selling and marketing expenses on the advertising campaigns launched during the current quarter.

In Q3 2021, net profit after Zakat and tax fell 26% to SAR 35.6 million from SAR 48.11 million a year earlier on a 5% YoY decline in revenue, a 14% YoY fall in gross profit and a decrease of SAR 1 million in marketing expenses.

On a sequential basis, Q3 net profit declined 8% from SAR 38.7 million on higher doubtful debt expenses, compared to the previous quarter. This included an expense reversal of SAR 6.3 million, in accordance with the expected credit loss (ECL) model, which negatively impacted the comparative figures.

Shareholders’ equity, after minority interest, decreased by 1.3% to SAR 531 million in the nine-month period, from SAR 538.3 million a year earlier.

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