Maharah 9M 2024 profit rises 43% to SAR 125.5M; Q3 at SAR 24.4M

Maharah Human Resources Co. recorded a 43% net profit jump to SAR 125.5 million before minority interest in the first nine months of 2024, compared to SAR 87.8 million a year earlier.

The nine-month leap was buoyed by a 16% year-on-year (YoY) rise in the company’s consolidated revenue to SAR 1.61 billion, as revenue from the corporate segment and the hourly services segment grew by 20% and 26% YoY, respectively. This growth was buoyed by an increase in average number of workforce in those segments by 1% and 4%, respectively, to match the rising demand for offered services.

Gross profit also increased by 7% YoY on the corporate and hourly services segments.

Maharah recorded a decrease in doubtful debt provisions by SAR 7.7 million, compared to the same period of the previous year, according to the expected credit loss model (ECL). Meanwhile, other income rose SAR 7.7 million, compared to 9M 2023.

Moreover, Maharah reported a 57% YoY increase in its profit share from Care Shield Holding Co. and Saudi Medical Systems Co., with profits from investments in associates reaching SAR 48.6 million during this period.

On the other hand, the company reported a YoY rise of SAR 1.9 million in selling and distribution expenses. Finance costs also increased by SAR 4.3 million.

The third-quarter net income increased by 19% to SAR 24.4 million, from SAR 20.4 million in Q3 2023 on the back of an 18% YoY rise in the company’s consolidated revenue to SAR 558.4 million, as revenue from the corporate segment and the hourly services segment increased by 24% and 16% YoY, respectively. Other income rose by SAR 4.2 million, compared to Q3 2023.

Compared to the previous quarter, Maharah’s net earnings dropped 52.3% from SAR 51.1 million as gross profit dropped 10% on a sequential basis. On the other hand, consolidated revenue grew 4% quarterly.

Total shareholders’ equity, after minority interest, rose to SAR 623.03 million as of Sept. 30, 2024, from SAR 620.58 million in the year-earlier period.

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