The quarterly profit of Maharah Human Resources Company recorded a decline of 21.7% to reach, after zakat and tax, 38.7 million riyals in the second quarter of 2021, compared to 49.2 million riyals in the corresponding period of last year.
According to Arabiya Net, compared to the profits achieved in the previous quarter, profits increased by 23.6%, which was 31.3 million riyals.
During the first half of 2021, Maharah's profits fell 34.4% to 70 million riyals, compared to 106.7 million riyals in the first half of 2020.
The company attributed the decline in its quarterly profits to a decline in the company's revenues by 8% compared to the same quarter of the previous year, as the revenues of the business and individual sectors decreased by 10% and 3%, respectively. Compared to the same quarter of the previous year, as a result of a decrease in the average number of the workforce, which was affected by a decrease in the number of arrivals due to the continued suspension of international flights from some major source countries as one of the consequences of the spread of mutated versions of the Corona virus.
Gross profit decreased by 28% due to lower costs than revenue, and although variable costs related to labor cost decreased, some other costs increased as cost Recruitment and recruitment, as well as expenses resulting from the application of social distancing standards.
On the other hand, the provision for doubtful debts was reversed at an amount of 6.3 million riyals during the current quarter as a result of the improvement in collection performance, according to the expected credit loss allowance model.
Financial costs amounting to 1.9 million riyals resulting from recording the current value of long-term receivables have been recognized.
