SMASCO 9M 2024 profit dips 15% to SAR 103.1M; Q3 at SAR 29M

Saudi Manpower Solutions Co. (SMASCO) recorded a 15% drop in net profit to SAR 103.1 million in the first nine months of 2024, compared to SAR 121.8 million a year earlier.

During the nine-month period, SMASCO’s gross profit declined 6.7% year-on-year (YoY), primarily hurt by a decrease in the individuals segment’s gross profit due to reduced revenues from the implementation of service price ceilings and other requirements according to the issued regulations.

Additionally, general and administrative expenses (G&A) increased by SAR 6.4 million YoY, due to booking the company’s share of public offering expenses, higher employee costs, end-of-service provisions, and increased depreciation and rent expenses for new buildings.

On the other hand, the company’s topline grew by 3.69% YoY on improved revenue from other segments amid better operating activities

The third-quarter net income fell by 34% to SAR 29 million, from SAR 44.2 million in Q3 2023, as gross profit dropped by 16.8% YoY, affected by a decline in the individuals segment’s gross profit and revenue. This was offset by a 1.73% increase in revenue.

Compared to the previous quarter, SMASCO’s net earnings dropped 19% from SAR 35.8 million on a 2.75% decline quarter-on-quarter (QoQ) in revenue.

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