Maharah H1 2021 net profit declines 34% to SAR 70 mln

Maharah Human Resources Co. reported a net profit after Zakat and tax of SAR 70 million for the first half of 2021, a 34% decrease, compared to SAR 106.7 million in the same period a year ago.

The company attributed the profit drop to a 13% decline year-on-year (YoY) in revenue and a 29% decrease YoY in gross profit.  

Revenue of corporate and individual sectors decreased by 14% and 11% YoY, respectively, as a result of the decline in the average number of resources, driven by lower number of arrivals due to the continuing suspension of the international flights from the sourcing countries as one of the consequences of the spread of COVID-19.  

Maharah also incurred a finance cost of SAR 1.9 million to reflect the present value of long-term accounts receivable. 

On the other hand, there was a reversal of doubtful debt provision by SAR 4.2 million due to improved collections in accordance with the expected credit loss (ECL) model.

The company’s Q2 2021 net profit after Zakat and tax fell 22% year-on-year (YoY) to SAR 38.7 million due to an 8% drop in revenue and 28% decline in gross profit.

On a quarterly basis, Q2 net profit jumped 23.5% on drop in general and administrative expenses.