Maharah Human Resources Co. announces its Annual Financial Results for the Period Ending on 2022-12-31
| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 1,683.59 | 1,318.73 | 27.67 | ||
| Gross Profit (Loss) | 229.22 | 219.9 | 4.24 | ||
| Operational Profit (Loss) | 108.2 | 146.03 | -25.91 | ||
| Net Profit (Loss) after Zakat and Tax | 154.11 | 144.93 | 6.33 | ||
| Total Comprehensive Income | 148.55 | 143.01 | 3.87 | ||
| Total Share Holders Equity (after Deducting Minority Equity) | 599.11 | 572.44 | 4.66 | ||
| Profit (Loss) per Share | 4.11 | 3.86 | |||
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is | The consolidated net income attributable to the shareholders of the company increased by 6% compared with the previous year, mainly due to:
• The company's revenue increased by 28% compared to the previous year, whereas the revenue from corporate and individual segments increased by 20% and 34% respectively compared to the previous year due to the increase in the average number of resources by 19%, in addition to the revenue recognized from the new strategic contracts in the corporate segment, in addition to the revenues generated from the newly established and acquired entities.
• The company's main segments (corporate and individual) witnessed an increase in gross profit by 14% compared to the previous year. In contrast, the gross profit was adversely affected by the results of the facilities management, logistics, and home healthcare sectors, which are still considered in their startup and restructuring phases which lead the company to achieve net growth in gross profit by 4.24% compared to the previous year.
• The investment in associates acquired during the third quarter of this year (Care Shield Holding Co. and Saudi Medical Systems Co.) achieved an income of SR 56M during the current year, which we expect to continue its positive results during the coming periods.
• In addition, the company’s investment in financial instruments through profit or loss has generated an increase in income by SR 1.9M compared to the previous year.
• In contrast, general and administrative expenses increased by SR 32.7M compared to the previous year which was mainly due to the consolidation of the newly acquired companies in addition to some other non-recurring items.
• Sales and marketing expenses increased by SR 3.3M compared to the previous year due to the increase in advertising expenses in addition to the expenses of the consolidated subsidiaries during the current year.
• The Company recognized doubtful debt provision expense of SR 8.4M in compliance with the expected credit loss model.
• The financing cost increased by SR 9.1M during the current year compared to the previous year, which was mainly due to the obtained long-term loans to finance the new acquisitions that have been completed during the current year. |
| Statement of the type of external auditor's report | Unmodified opinion |
| Reclassification of Comparison Items | Certain prior period figures have been reclassified to conform to the current period presentation. |
| Additional Information | • The company achieved revenue of SR 474M during the fourth quarter of this year with an increase of 35% compared to the same period of the previous year whereas the revenue from corporate and individual segments increased by 43% and 23% respectively compared to the same period of the previous year due to the increase in the average number of resources, in addition to the revenue recognized from the new strategic contracts in the corporate segment.
• The sales and purchase agreement of the acquired equity shares in associates during the year (Care Shield Holding Company - 41.36%, SMS Company - 40%) stated the company's right to its share in the financial results of those companies from the beginning of the year 2022.
• During the current year, the company acquired equity shares representing 19.78% of KABI Company (a closed Saudi joint stock company - capital totaling SR 200M) through in-kind participation representing its stake of the previously owned shares in Bloovo Ltd. The purpose of this investment is medium to long-term strategic purposes. The company classified this investment at fair value through OCI.
• Total equity attributable to the shareholders of the parent company amounted to SR 599M (SR 572M in 2021)
• The details of the conference call and its timing will be available on Maharah's website in the investor relations section along with the interim financial statements and the presentation accompanying the call at the link: https://www.maharah.com/investors, in addition to Maharah investor relations mobile application. |
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