Maharah Q1 2025 net profit drops 53% to SAR 23.7M

Maharah Human Resources Co. reported a net profit of SAR 23.7 million in Q1 2025, a decrease of 53% from SAR 50.2 million the year-earlier period.

During the three-month period, gross profit was stable at SAR 65 million, despite the increase in company revenues. This was due to the impact on gross profit margins on the company's main segments. Prices for services provided by the corporate services segment declined despite revenue growth, as part of a strategy to retain strategic clients and sustain revenue growth and numbers of workforce. The individual services segment was affected by competitive pricing pressures and increased seasonal cost.

Losses from subsidiaries (other segments) increased, reaching SAR 3.7 million in the first quarter of this year, due to lower revenues in the logistics sector resulting from reduced operational activities.

Meanwhile, G&A expenses increased by SAR 3 million, mainly due to the implementation of a long-term employee incentive program.

Additionally, the company's share of profits from associates (Saudi Medical Systems Co. and Care Shield) decreased to SAR 29.2 million compared to the same quarter last year. 

On the other hand, income from operations increased by 9.4% year-on-year due to higher revenue, in addition to the decrease in the provision for expected credit losses by SAR 6.6 million.

On a quarterly basis, net profit grew sharply from SAR 1.98 million in Q4 2024.

Shareholders’ equity, no minority interest, reached SAR 613.96 million by March 31, 2025, compared to SAR 582 million in the prior-year period.

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