Saudi Manpower Solutions Co. announces its Interim Financial results for the Period Ending on 2025-06-30 ( Six Months )

Revenues for the current quarter increased by 7.8% compared to the same quarter of the previous year, supported by improved revenues from the company’s main sectors, Business sector and Individuals sector, with increase of 7.9% and 11.7%, respectively.

This is in line with the rising demand for manpower services in both sectors, despite a decline in revenues from Others sector by 4.2% due to natural fluctuations in the secondary services provided.

Net profit for the current quarter decreased by 17.6% compared to the same quarter of the previous year, despite a 27% increase in Gross Profit. This increase in Gross Profit was driven by higher demand for manpower services. However, this was offset by a rise in general and administrative expenses by SAR 1.9 million (14.5%) due to increased spending on professional consulting services, information technology, cybersecurity, and depreciation expenses.

Additionally, sales and marketing expenses increased by SAR 0.7 million (17.6%) in line with the marketing strategy. Investment losses of SAR 3.75 million were also recorded due to the launch of "Waad Khadmat Al Munzal for Marketing” during the current year, in alignment with Waad’s business plan.

A provision for impairment in the value of trade receivables amounting to SAR 4.4 million was recorded during the current quarter, in accordance with the expected credit loss model. Furthermore, a loss from the impairment in the value of advance payments to suppliers was recorded in the current quarter amounting to SAR 5.9 million, which did not exist in the same quarter of the previous year. Other revenues also decreased by SAR 1.9 million compared to the same quarter of the previous year.

Net profit for the current quarter decreased by 27.1% compared to the previous quarter, due to a 4.1% decline in the Gross Profit across the company’s sectors. This decrease in Gross Profit is mainly attributed to lower activities resulting from the end of Ramadan season and the start of the summer season, which led to reduced demand during the current quarter compared to previous quarter.

Additionally, the company recorded an increase in the provision for impairment of trade receivables amounting to SAR 2 million in accordance with the expected credit loss model and recorded a loss from the impairment of advance payments to suppliers in the current quarter amounting to SAR 5.9 million, which was not present in the previous quarter. Other revenues also declined by SAR 1.8 million

Revenues for the first half of 2025 increased by 6.1% compared to the first half of the previous year, supported by improved revenues from the company’s main sectors, Business Sector and Individuals Sector, which grew by 5.1% and 11.7%, respectively. This growth is in line with the increased demand for manpower services in both sectors.

This was achieved despite a 4.1% decline in revenues from Others sector, due to normal fluctuations in the secondary services provided.

Net Profit for the first half of 2025 decreased by 5.5% compared to the first half of the previous year, despite a 21% increase in Gross Profit. This decline in Net Profit is mainly due to a rise in general and administrative expenses by SAR 4.9 million (19%), driven by higher spending on professional consulting services, information technology, cybersecurity, and depreciation expenses.

Selling and marketing expenses also increased by SAR 1.5 million (16.5%) in line with the company’s marketing strategy.

Additionally, investment losses amounting to SAR 7.5 million were recorded related to the launch of Waad Khadmat Al Munzal for Marketing during the current year, which is consistent with Waad’s business plan.

The provision for impairment in the value of trade receivables also rose by SAR 6.8 million in accordance with the expected credit loss model. A loss from the impairment in the value of advance payments to suppliers amounting to SAR 5.9 million was recorded during the current period, which did not exist in the same period last year.

Furthermore, other revenues declined by SAR 1.9 million during the current period.