Maharah H1 2024 profit up 50% to SAR 101.1M; Q2 at SAR 51.1M

Maharah Human Resources Co. posted a net profit leap of 50% to SAR 101.1 million in the first half of 2024, from SAR 67.4 million in the prior-year period.

The first-half earnings were driven by a 14% year-on-year (YoY) rise in consolidated revenue to SAR 1.05 billion.

The company’s topline improved from the key segments. Revenues from the corporate segment and hourly services segment (Khidmah) increased by 18% and 31% YoY, respectively as the average workforce rose by 14% and 34% in both segments. In addition, revenues grew from subsidiaries (other segments).

Gross profit grew 10% YoY driven by the key segments.

Maharah reported an increase in its profit share from associates (Care Shield Holding Co. and Saudi Medical Systems Co. (SMS) by 64% compared to SAR 16.5 million in the same quarter of the last year.

Additionally, other income increased by SAR 3.5 million compared to Q2 2023, mainly due to income from leasing of investment properties. Doubtful debt provisions also declined by SAR 3.5 million YoY.

In Q2 2024, Maharah’s bottom line leapt 46% to reach SAR 51.1 million, compared to SAR 35.1 million in the second quarter of 2023 as revenue rose by 16% YoY. Gross profit also went up by 8% on an annual basis. Maharah’s profit share from Care Shield and SMS increased by 64% YoY.

Meanwhile, general and administrative expenses dropped by SAR 1 million YoY despite a rise of SAR 900,000 in marketing expenses. Financing costs also rose by SAR 1.6 million.

On a sequential basis, net earnings grew by 2.2% from SAR 50 million in Q1 2024.

Shareholders’ equity, after minority interest, reached SAR 635.59 million as of June 30, 2024, down from SAR 638.1 million a year earlier.

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