1831 · 03/11/2020 08:18:56 · Announcement #60887 · View on Saudi Exchange

Maharah Human Resources Co. announces its Interim Financial Results for the Period Ending on 2020-09-30 ( Nine Months )

Element ListCurrent QuarterSimilar quarter for previous year%ChangePrevious Quarter% Change
Sales/Revenue 342.1386.4-11.464352.5-2.95
Gross Profit (Loss) 63.7106.3-40.07574.4-14.381
Operational Profit (Loss) 47.581.3-41.57454.4-12.683
Net Profit (Loss) after Zakat and Tax 48.180.1-39.9549.4-2.631
Total Comprehensive Income 48.378.4-38.39247.12.547
All figures are in (Millions) Saudi Arabia, Riyals
Element ListCurrent PeriodSimilar period for previous year%Change
Sales/Revenue 1,084.31,126.5-3.746
Gross Profit (Loss) 217.3273-20.402
Operational Profit (Loss) 161.7208.4-22.408
Net Profit (Loss) after Zakat and Tax 154.8206.1-24.89
Total Comprehensive Income 152.1201.7-24.59
Total Share Holders Equity (after Deducting Minority Equity) 538.3532.11.165
Profit (Loss) per Share 4.135.5
All figures are in (Millions) Saudi Arabia, Riyals
Element ListExplanation
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 parent company decreased by 40% compared with the same quarter of the previous year, mainly due to:

•The company's revenue decreased by 11% as a result of the effects of the Corona pandemic, where corporate segment revenue decreased by 11% compared to the same quarter of the previous year due to the decrease in the average number of resources due to the suspension of the international flights with the workforce’s sourcing countries, and the individual segment revenue decreased by 12% due to the decrease in the resources utilization of Khidmah program (part-time services) which resumed at the beginning of the current quarter.

•Gross profit decreased by 40% compared to the same quarter of the previous year due to the decline in the company's revenues in general.

•In contrast, general and administrative expenses decreased by 10% as a result of the control on these expenses and also the expenses of doubtful debts decreased by SAR 7.4 million compared to the same quarter of the previous year as a result of the reversal of expenses of doubtful debts by SAR 1.6 million during the current quarter as a result of the enhancement in collection performance and in accordance with the ECL model.Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to Consolidated net income attributable to the shareholders of the parent company decreased by 3% compared with the previous quarter, mainly due to:

•The company's revenue decreased by 3% as a result of the continuing effects of the Corona pandemic and the decrease in the average number of resources due to the suspension of the international flights with the workforce’s sourcing countries, where the corporate segment revenues decreased by 2%, as well as a decline in revenues from the individual segment by 6% compared to the previous quarter with the gradual return of Khidmah program (part-time services) which resumed at the beginning of the current quarter.

•Gross profit decreased by 14% compared to the previous quarter due to the decline in the company's revenues in general.

•In contrast, a decrease in the doubtful debt expense by SAR 3.3 million compared to the previous quarter as a result of the reversal of expense of doubtful debt of SAR 1.6 million during the current quarter as a result of the enhancement in collection performance and in accordance with the ECL modelIncrease (Decrease) in Net Profit for Current Period Compared to the Similar Period of the Previous Year is Attributed to Consolidated net income attributable to the shareholders of the parent company for the current nine-months decreased by 25% compared with the same period of the previous year, mainly due to:

•The company's revenue decreased by 4% compared to the same period of the previous year, where revenue from both corporate and individual segments decreased by the same percentage to achieve a net income of SAR 792 million and SAR 293 million respectively during the current period, due to the decrease in the average number of resources as a result of the effects of the spread of the Corona pandemic and precautionary measures taken by the government, including the temporary suspension during the second quarter of Khidmah program (part-time services).

•The decrease in the gross profit by 20% during the period due to the decline in the company's revenues in general, in addition to the costs to apply the standards of social distancing and precautionary measures, despite the decrease in the costs of recruitment and visas as a result of the interruption of the workforce new arrivals due to the suspension of the international flights with the workforce’s sourcing countries.

•Marketing expenses increased by 28% compared to the same period of the previous year as a result of marketing and awareness campaigns during the Corona pandemic period.

•In contrast, general and administrative expenses decreased by 5% and also a decrease in expense of doubtful debt by SAR 8.4 million compared to the same period of the previous year as a result of the enhancement in collection performance and in accordance with the ECL modelBasis of the External Auditor's Opinion Unmodified opinionReclassification of Comparison Items Certain prior period's figures have been reclassified to conform to the current period presentation.Additional Information A conference call with analysts and investors will be held on Wednesday 11 November 2020 from 3:00PM to 4:30PM KSA.

Details of the conference call will be available on Mahara's website at the following link: https://www.maharah.com/investors

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