Maharah Human Resources Co. announces its Interim Financial results for the Period Ending on 2024-03-31 ( Three Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 518.52 | 462.03 | 12.226 | 493.91 | 4.982 |
| Gross Profit (Loss) | 63.28 | 56.75 | 11.506 | 57.21 | 10.61 |
| Operational Profit (Loss) | 31.43 | 30.16 | 4.21 | 13.39 | 134.727 |
| Net profit (Loss) | 50.03 | 32.27 | 55.035 | 9.28 | 439.116 |
| Total Comprehensive Income | 48.05 | 32.27 | 48.899 | 1.6 | 2,903.124 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Total Share Holders Equity (After Deducting the Minority Equity) | 582.15 | 593.89 | -1.976 |
| Profit (Loss) per Share | 0.11 | 0.07 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Percentage of the capital (%) | Amount | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| 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 consolidated revenue has increased in the 1st Quarter 2024 by SR 56.5 million compared to the same quarter of last year due to the following:
•The company's revenue increased by 12% compared to the same quarter of last year, as a result of the improvements in revenues in some of the main sectors, including the corporate segment and hourly services segment (Khidmah), which increased by 18% and 60% respectively due to the increase in average number of workforce in those segments by 15% and 39% respectively, to match the rising demand of the offered services in those sectors and to the strategic contracts signed with the corporate sector customers. The revenues also increased, as a result of the increase in revenues of the subsidiaries (other sectors) during this period due to the improved operational activities as planned. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | The consolidated net income attributable to the shareholders of the company increased by 55% in the first quarter of 2024 compared to the same quarter of the last year is, mainly due to:
•The overall profit margin increased by 12% compared to the same quarter of last year due to the improvement in the gross profit of the company's main sectors (Corporate & Hourly services) in addition to the improved performance of some other sectors such as the facility management and logistics sectors. This is despite the continued impact on the individual sector (Permanent services) as this sector faces challenges due to the implementation of price ceilings for individual services in accordance with the applied regulations, which led to a decrease in the average price per workforce, and due to the temporary suspension in recruitment from Indonesia as a result of changes of workforce regulations, which were lifted lately.
•The results of the 1st quarter of 2024 included profits from investments in associate (Care Shield and SMS Company), amounting to SR 26.1M which increased by 140% compared to the same quarter of the last year and this is due to the improved operational performance of these companies.
•Also, other income increased by SR 2.6 million compared to the same quarter of the last year, mainly due to leasing of investment properties.
•In contrast, the general & administration expenses increased by SR 2.7 million in this current quarter compared to the same quarter of the last year as a result of some unrecurring items.
•Also, the marketing expenses increased by SR 1.2 million compared to the same quarter of last year as a result of the carried marketing campaigns at the beginning of the season.
•The increase in provisions of doubtful debt by SR 1.3 million compared to the same quarter of the last year, according to the expected credit loss model (ECL).
•The increase in financing costs by 1.2 million during the current quarter which is due to the rise in the Murabaha rates during the current quarter compared to the same quarter of the last year. |
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is | The consolidated revenue has increased in the first quarter of 2024 by SR 24.6 million compared to the previous quarter due to the following:
•The company's revenue increased by 5% compared to the previous quarter, as a result of the improvements in revenues in some of the main sectors, including the corporate segment and hourly services segment (Khidmah), which increased by 8% and 39% respectively due to the increase in average number of workforce in those segments by 3% and 6% respectively, to match the rising demand of the offered services in those sectors and due to the strategic contracts signed with the corporate sector customers. The revenues also increased by 64% compared to the previous quarter, as a result of the increase in revenues of the subsidiaries (other sectors) due to the improved operational activities as planned. |
| The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is | The consolidated net income attributable to the shareholders of the company increased by 439% compared to the previous quarter, mainly due to:
•The overall profit margin increased by 11% compared to the previous quarter due to the overall improvement of gross profits of the main sectors of the company and specifically due to improved performance of some of the other sectors such as the facilities and logistics sectors. This is despite the continued impact on the individual sector (Permanent services) due to the temporary suspension in recruitment from Indonesia as a result of changes in workforce regulations, which were lifted lately.
•Also, the decrease in provisions of doubtful debt by SR 13.2 million compared to the previous quarter as the previous quarter recorded some specific and doubtful debts in addition to the expected credit loss model (ECL)
•The results of the 1st quarter of 2024 included profits from investments in associates (Care Shield and SMS Company), amounting to SR 26.1M which increased by 242% compared to the previous quarter and this is due to the improved operational performance of these companies.
•The financing costs amounted to 11.7 million during the current quarter, a decrease of 1.5 million compared to the previous quarter. |
| Statement of the type of external auditor's report | Unmodified conclusion |
| Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) | The condensed consolidated interim financial statements for the three-month period ended March 31, 2023, were reviewed by another auditor, who issued an unmodified conclusion on these condensed consolidated interim financial statements on Shawwal 21, 1444 (corresponding to May 11, 2023). |
| Reclassification of Comparison Items | Certain prior period figures have been reclassified to conform to the current period presentation. |
| Additional Information | •In 2023, the company completed the PPA for the associate companies acquired in the third quarter of 2022, which resulted in the application of IFRS for associate companies (SMS and Care Shield Company). As a result of the PPA, the company made the necessary adjustments according to IFRS requirements, including recording amortizations of intangible assets for all quarters of the year 2023, including the first and fourth quarters of the year 2023, to align with the comparative figures of the current quarter (Restated Q1 2023)
•Total equity attributable to the shareholders of the parent company amounted to SR 582.1M (SR 593.89M by the end of the first quarter of 2023)
•The details of the conference call and its timing will be available on Maharath’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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