| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 352.5 | 367.2 | -4.003 | 389.8 | -9.569 |
| Gross Profit (Loss) | 74.4 | 86.9 | -14.384 | 79.3 | -6.179 |
| Operational Profit (Loss) | 54.4 | 72.5 | -24.965 | 59.8 | -9.03 |
| Net Profit (Loss) after Zakat and Tax | 49.4 | 72 | -31.388 | 57.3 | -13.787 |
| Total Comprehensive Income | 47.1 | 71.6 | -34.217 | 56.7 | -16.931 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 742.2 | 740.1 | 0.283 |
| Gross Profit (Loss) | 153.7 | 166.7 | -7.798 |
| Operational Profit (Loss) | 114.2 | 127.1 | -10.149 |
| Net Profit (Loss) after Zakat and Tax | 106.7 | 126 | -15.317 |
| Total Comprehensive Income | 103.8 | 123.3 | -15.815 |
| Total Share Holders Equity (after Deducting Minority Equity) | 574.3 | 553.8 | 3.701 |
| Profit (Loss) per Share | 2.84 | 3.36 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| Increase (Decrease) in Net Profit for Current Quarter Compared to the Same Quarter of the Previous Year is Attributed to | Consolidated net income attributable to the shareholders of the company decreased by 31% compared with the same quarter of the previous year, mainly due to: |
• The decrease in the company revenue by 4% as a result of the impact of the COVID19 pandemic spread which decreased the corporate sector revenue by 5% in addition to the decrease in the individual sector revenue by 2% as a result of the suspension of Khidmah program (part-time services) during the second quarter 2020 due to the governmental precautionary procedures to avoid the spread of COVID19 which led to a decrease in gross profit by 8% compared to the same quarter of the previous year. In addition to the increase in expat levy fees which was applied by the government during 2020 offset partially by the decrease in the visa and recruitment costs which the company started the capitalization of these costs and amortize through the employment contract tenor starting from the second half of 2019.
• The increase in marketing and awareness campaigns expenses during the period to reduce the implications of the spread of COVID19 pandemic.
• The Increase in the doubtful debt expense by SAR 3.5 million compared to the same quarter of the previous year in accordance with the ECL model.
• The decrease in other income by SAR 2.6 million compared to the same quarter of the previous year due to the reversal of provisions that are no longer payable during the previous year, moreover the decrease in the profit rates of the Murabaha time deposits during the period.
• The decrease in revenue by 10% as a result of the impact of COVID19 pandemic spread which decreased the corporate sector revenue by 9% in addition to the decrease of the individual sector revenue by 11% as a result of the suspension of Khidmah program (part-time services) during the second quarter of 2020 due to the governmental precautionary procedures to avoid the spread of COVID19 which has impacted the gross profits.
• The increase of additional operating costs which was incurred by the company as a result of applying standards of social distancing and applying many precautionary measures to limit the spread of the COVID19, in addition to the increase of leave provisions and tickets provision due to air ticket prices increase.
• The increase in marketing and awareness campaigns expenses during the period to reduce the implications of the spread of COVID19 pandemic, though doubtful debts expense decreased by 8% compared to the previous quarter as a result of the improvement in the collection performance, and in accordance with the ECL model.
• Maintaining the same level of revenues during the period, where the corporate and individual sectors achieved revenue of SAR 540 million and SAR 202 million respectively during the first half of this year with a slight increase compared to the same period of the previous year, as a result of the initiatives that have been applied to the corporate sector customers and as a result of the company agile model which enabled the company to reallocate the manpower resources between the sectors to maintain an appropriate utilization rate of its resources and reducing the impact of COVID19 pandemic despite the suspension of Khidmah program (part-time services) during the second quarter due to the precautionary procedures by the government.
• The decrease in the gross profit by 8% compared to the same period of the previous year due to the increase in expat levy fees which was applied by the government during 2020 with a total additional cost of SAR 12 million, moreover the increase in the leave provision and ticket provision due to air ticket prices increase. Also, the company incurred an additional cost to apply standards of social distancing and Implement precautionary measures to avoid the spread of COVID19. These were offset partially by the decrease in the visa and recruitment costs which the company started capitalization of these costs and amortize through the employment contract tenor starting from the second half of 2019.
• The decrease in income from operation by 10% compared to the same period of the previous year due to the aforementioned decrease in gross profit, in addition to the increase in marketing expenses by 30% as a result of the marketing and awareness campaigns related to the COVID19 pandemic during the period. Offset partially by the decrease in the general and administration expenses of 1% and the decrease in the provision for doubtful debts expense by SAR 1 million as a result of the improvement in the collection performance and in accordance with the ECL model.
• The decrease in other income by SAR 4.6 million compared to the same period of the previous year due to the reversal of provisions that are no longer payable during the period in the previous year, moreover the decrease in the profit rates of the Murabaha time deposits during the period.
Details of the conference call will be available on Maharah's website at the following link:
https://www.maharah.com/investors
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