Tamkeen Human Resource Co. announces its Interim Financial results for the Period Ending on 2024-09-30 ( Nine Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 195.9 | 119.8 | 63.522 | 166.6 | 17.587 |
| Gross Profit (Loss) | 37.6 | 23.2 | 62.068 | 34.2 | 9.941 |
| Operational Profit (Loss) | 19.7 | 11.7 | 68.376 | 19 | 3.684 |
| Net profit (Loss) | 29.7 | 12.9 | 130.232 | 20.9 | 42.105 |
| Total Comprehensive Income | 29.7 | 12.9 | 130.232 | 20.9 | 42.105 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 507.9 | 361.9 | 40.342 |
| Gross Profit (Loss) | 102.3 | 80.3 | 27.397 |
| Operational Profit (Loss) | 55.8 | 46.5 | 19.999 |
| Net profit (Loss) | 69.1 | 49.1 | 40.733 |
| Total Comprehensive Income | 69.1 | 49.1 | 40.733 |
| Total Shareholders Equity (after Deducting Minority Equity) | 334.1 | 289.2 | 15.525 |
| Profit (Loss) per Share | 2.6 | 1.86 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| Accumulated Losses | - | - | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is | the company’s consolidated revenues for Q3 2024 increased by SAR 76.1 million, a 64% growth compared to the same quarter of the previous year. This growth is primarily attributed to the following: |
Revenues from the corporate sector saw significant growth during this quarter, driven by strong performance. The average number of resources increased by 110%, meeting the growing demand for services in this sector.In contrast, Individual Sector revenues declined compared to the same quarter of the previous year, reflecting a 5% reduction in the average number of resources. This decrease is attributed to the implementation of service price caps, compliance with regulatory requirements, and intensified market competition due to the increasing number of service providers. Subsidiaries Performance: Eraf Medical Company (a joint venture with Dr. Sulaiman Al Habib Medical Group) reported a revenue increase of SAR 2.6 million. Elaf Specialized Contracting Company achieved SAR 949K in revenue, marking the commencement of its operations according to their approved operational plans .Open Technologies for Communications and Information Technology Company recorded a 184% increase in revenues, equivalent to SAR 1.4 million, in line with the company’s strategic plan to enhance performance in the technology sectors.
These results underscore the significant financial performance improvements, supporting the achievement of the company’s strategic objectives, expanding its revenue base, and strengthening its competitive position in the market.
The company’s revenues increased by 64% compared to the same quarter of the previous year.
Gross profit increased by 62% compared to the same quarter of the previous year, driven by improved performance in the corporate sector. Where the revenues increased by 110%, leading to a 100% rise in gross profit for this sector. In contrast, the individual sector experienced a 73% decline in gross profit due to a reduction in revenues in this sector.
Operating profit rose by 68% compared to the same quarter of the previous year, despite a 52% increase in general and administrative expenses. The rise in expenses is attributed to a 34% increase in salaries, driven by the recruitment of new talent to support the company’s expansion and annual salary increment. Additionally, the provision for expected credit losses increased by SAR 1.2 million, based on a credit loss model prepared by an external consultant. This aligns with the increase in trade receivables, which is directly linked to higher company revenues.
Non-operating income increased by SAR 8.9 million compared to the same quarter of the previous year, this was primarily due to capital gains of SAR 9.6 million from the sale of a company-owned land plot in the Narjis District for SAR 13,131,525, after deducting the land cost of SAR 3,506,187.
These results highlight the company’s ability to achieve significant profitability growth while navigating increased operational expenses, reinforcing its strategic objectives and competitive positioning.
Revenues from the corporate sector continued to improve during this quarter, achieving a 25% growth. This increase was driven by a 20% rise in the average number of resources, resulting from higher demand from strategic clients in this sector. In contrast, revenues from the individual sector declined by 4% compared to the previous quarter, influenced by the seasonal nature of services provided during this period. Subsidiaries Performance: Eraf Medical Company (a joint venture with Dr. Sulaiman Al Habib Medical Group) reported a revenue increase of SAR 1.7 million. Elaf Specialized Contracting Company achieved SAR 949K in revenue as it commenced operations according to their approved operational plans.
The company’s consolidated net profit attributable to shareholders for Q3 2024 increased by 42% compared to the previous quarter. This growth is primarily attributed to the following:
Gross profit increased by 10% compared to the previous quarter, driven by higher revenues in the corporate sector, contributing an additional SAR 6.0 million in gross profit. In contrast, the individual sector experienced a decline in gross profit by SAR 3.5 million due to intense competition, price caps, and the seasonal nature of services, which limited profitability in this sector. Subsidiaries contributed significantly, with gross profit from subsidiaries rising by 164%, equivalent to SAR 951K, reflecting improvements in operational performance and their growing contribution to the company’s financial results.
These results demonstrate the company’s ongoing focus on enhancing the corporate sector's performance and maximizing subsidiary contributions despite challenges in the individual sector.
Administrative and general expenses increased by SAR 1.5 million compared to the previous quarter, mainly due to higher IT subscription costs, aligned with the company’s efforts to strengthen its technological infrastructure. Additionally, the provision for expected credit losses rose by SAR 400K, based on a credit loss model prepared by an external consultant. This adjustment aligns with the increase in trade receivables, reflecting the company’s revenue growth during the quarter.
Non-operating income increased by SAR 9.2 million compared to the previous quarter, primarily due to capital gains of SAR 9.6 million from the sale of a company-owned land plot in the Narjis District for SAR 13,131,525. The capital gain was calculated after deducting the land’s book value of SAR 3,506,187.
These results highlight the company’s ability to achieve strong profitability growth, leveraging increased performance in key sectors and subsidiaries
These results underscore the company’s ability to achieve strong revenue growth through enhanced performance in the corporate sector and the successful launch of subsidiaries’ operations, despite challenges in the individual sector.
Revenues from the corporate sector recorded significant growth of SAR 160.0 million, an 83% increase.
This growth was driven by a 90% rise in the average number of resources, reflecting increased demand from strategic clients for services provided in this sector.
In contrast, revenues from the individual sector declined by 14%, primarily due to a 7.2% decrease in the average number of resources.
This decrease is attributed to the suspension of resources recruitment from Indonesia starting in the second half of 2023 through Q1 2024, coupled with intense competition in this sector, which negatively impacted revenues.
Subsidiaries also contributed to revenue growth during this period, supported by the commencement of operational activities for both Eraf Medical Company (a joint venture with Dr. Sulaiman Al Habib Medical Group) and Elaf Specialized Contracting Company, as per their approved operational plans.
These results underscore the company’s ability to achieve strong revenue growth through enhanced performance in the corporate sector and the successful launch of subsidiaries’ operations, despite challenges in the individual sector.
The company’s revenues increased by 40% compared to the same period of the previous year.
Gross profit grew by 28%, driven by improved performance in the corporate sector, which contributed an additional SAR 35.2 million in gross profit due to increased revenues. In contrast, the individual sector saw a decline in gross profit of SAR 15.3 million, impacted by lower revenues in this segment. Subsidiaries contributed SAR 2.4 million to the company’s gross profit, following the commencement of their operational activities as per their approved operational plans.
General and administrative expenses increased by SAR 10.3 million compared to the same period of the previous year, this rise was primarily due to higher salary expenses resulting from the recruitment of new talent to support the company’s business expansion in 2024, along with annual salary increment. Additionally, the provision for expected credit losses increased by SAR 2.8 million, based on a credit loss model prepared by an external consultant. This reflects the increase in trade receivables driven by the company’s revenue growth and demonstrates the company’s commitment to adhering to precise accounting standards and effectively managing credit risk.
Non-operating income rose by SAR 10.1 million compared to the same period of the previous year, primarily due to capital gains of SAR 9.6 million from the sale of a company-owned land plot in the Narjis District for SAR 13,131,525. The capital gain was calculated after deducting the land’s book value of SAR 3,506,187.
These results reflect the company’s ability to achieve substantial profit growth by leveraging revenue expansion and strong subsidiary performance, while maintaining rigorous financial and risk management practices.
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