Profits of Maharah Human Resources Company decreased by 31% to reach 49.4 million riyals in the second quarter of 2020, compared to profits of 72 million riyals during the same period last year.
According to Arabiya Net, the company recorded net profits after zakat and tax amounted to 106.7 million riyals during the first half ending on 30 June 2020, compared to recording 126 million riyals profits during The same period last year, down 15.3%.
The company said that the reason for the decline in the consolidated net income attributable to the shareholders of the company for the second quarter of the current year by 31% compared to the second quarter of the previous year is due to the decline in the company's revenues by 4 % Due to the effects of the spread of the Corona pandemic, which affected business sector revenues, as it decreased by 5%.
Personal sector revenues decreased by 2% as a result of being affected by the temporary suspension of the hourly domestic worker service program during the second quarter of the current year as a result of government precautionary measures.
This led to a decrease in the total profit for the period by 8% compared to the same quarter of the previous year in addition to the increase in the cost of revenues due to the increase in government fees related to the financial compensation for expatriate workers during The year 2020, despite the decrease in recruitment and visa costs as a result of the company capitalizing these costs and amortizing them over contract periods starting from the second half of 2019.
The reasons for the decline in the net profit are due to the stability of the company's revenue level during the period, as the business sector and the individual sector achieved revenues of 540 million riyals and 202 million riyals respectively during The first half of the current year 2020, a slight increase over the same period of the previous year as a result of the company’s undertaking many initiatives with the business sector in addition to the company's ability to re-employ the workforce among its business sectors to reach the appropriate employment rates and limit the effects of the spread of the Corona pandemic despite Temporary suspension of the (hourly domestic workers) service program during the second quarter as a result of the precautionary measures taken by the government.
she added that the decline also came as a result of a decrease in the total profit for the period by 8% compared with the same period of the previous year as a result of the increase in the cost of government fees in exchange for expatriate workers during 2020 in total An increase in the cost of 12 million riyals for this item in addition to the increase in the cost of the vacations and tickets allocations due to the high price of air tickets and incurring some additional costs for the application of social distancing standards and many precautionary measures to limit the spread of the Corona virus despite the decrease in recruitment costs and visas as a result of the company capitalizing these costs and extinguishing them on Contract periods ...
