Maharah Q2 financials impacted by COVID-19, growth hinges on resuming flights: CEO

Maharah Human Resources Co.'s Q2 2020 revenue was hit by the COVID-19 outbreak, as some of the company's services were halted, CNBC Arabia reported, citing Chief Executive Officer (CEO) Abdulkarim Alnujaidi.

"The business was subject to some changes due to market conditions in Q2; we transferred our domestic services to another company to provide the highest-quality services," Alnujaidi added.

Market conditions in Q2 weighed on net earnings and gross profit, but revenue remained at H1 2019 level, he noted.

As for the staff layoffs during the pandemic, Alnujaidi said that no layoffs were made, but workers moved from the worst-hit economic fields to the industries which saw more demand.

"Growth rates depend on resuming flights over the coming period, so that the company can begin resourcing manpower for different sectors in the Kingdom," he stated.

Alnujaidi expects operating rates to remain above 95%, and forecast domestic labor to witness more demand over the coming period, after schools and other business sectors resume operations.

Maharah reported net profit of SAR 49.4 million in Q2 2020, a drop of 31% year-on-year (YoY), Argaam reported.