Al Mawarid’s Q1 2023 profit jumps 71% to SAR 22.2 mln

Al Mawarid Manpower Co., which recently listed its shares on the Saudi Exchange (Tadawul), reported a 71% leap in Q1 2023 net profit to SAR 22.2 million from SAR 12.9 million in the year-earlier period.

The profit jump was buoyed by a 56% rise in revenues to SAR 294 million from SAR 188 million in Q1 2022. The company also reported higher other income.

By contrast, Al Mawarid’s gross profit margin (GPM) contracted to 12% in Q1 2023 from 13% in the first quarter of 2022, on increased cost of goods sold. The recruitment company reported higher administrative and marketing expenses, as well as an increase of 32.6% year-on-year (YoY) in tax and Zakat provisions.

Al Mawarid’s net profit dropped 12.5% from SAR 25.31 million in Q4 2022, as GPM fell from 14% to 12% in Q1 2023. The company recorded unused provisions of SAR 1.02 million in Q4 2022.

On the other hand, selling and marketing expenses decreased by 27.1% on a sequential basis.

Shareholders’ equity, no minority interest, reached SAR 314.08 million as of March 31, 2023 compared to SAR 246.75 million a year earlier.

Total comprehensive income in the three-month period stood at SAR 21.02 million, compared to SAR 13.72 million in Q1 2022.

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