On 2026-08-06 08:01:05 (Saudi Time), Al Mawarid Manpower Co. announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ending June 30, 2026, Al Mawarid Manpower Co. reported sales/revenue of SAR 1,541.69 million, up 27.093% YoY from SAR 1,213.04 million, driven by a 17% increase in average workforce, a SAR 278 million (29%) rise in Corporate segment revenues supported by stronger demand and a SAR 63 million (199%) surge in headhunting and Isnad Saudis revenues, and a SAR 51 million (21%) increase in Individual segment revenues on the back of higher workforce utilization. Net profit attributable to shareholders rose 64.008% YoY to SAR 102.21 million from SAR 62.32 million, primarily driven by a SAR 45 million (42%) increase in gross profit reflecting higher revenues and Individual segment margin expansion (gross profit margin improving to 16.3% from 10.5%), supplemented by SAR 6 million higher other operating income from Murabaha deposit returns and HRDF receipts, partially offset by SAR 7.5 million higher general, administrative, and marketing expenses and approximately SAR 2 million higher zakat expense in line with overall business growth.

Quarter-on-Quarter Performance Drivers

QoQ revenue rose 3.256% to SAR 783.19 million (vs. SAR 758.49 million prior quarter), driven by a 2% increase in the average workforce, with the Corporate segment growing 5%, partially offset by a 3% seasonal decline in the Individual segment. Net profit fell 4.12% QoQ to SAR 50.03 million (vs. SAR 52.18 million), primarily due to a SAR 2 million decrease in gross profit from the Hourly sector caused by seasonal fluctuations in utilization rates and a SAR 1.6 million rise in general, administrative, and marketing expenses from higher workforce-related costs. These negative impacts were partially mitigated by a SAR 2 million reduction in impairment loss on trade receivables and a SAR 0.8 million increase in other operating income from higher Murabaha deposit returns and HRDF receipts.

Other Items

Al Mawarid Manpower Co.'s interim financial results for the six months ended June 30, 2026 received an unmodified conclusion from the external auditor, with no additional comments, reservations, disclaimers, or adverse opinions noted. Total shareholders' equity (after deducting minority equity) stood at SAR 588.39 million as of the current period, compared to SAR 444.18 million in the same period of the prior year, representing an increase of 32.466%. Earnings per share for the current period were SAR 5.11, compared to SAR 3.12 in the same period of the prior year. The company noted that earnings per share for the comparative period have been adjusted retrospectively based on an adjusted weighted average number of shares of 20 million shares, reflecting the impact of a bonus share issuance approved by the Extraordinary General Assembly held on February 10, 2026, which increased the capital from SAR 150 million (15 million shares) to SAR 200 million (20 million shares), resulting in restated earnings per share for Q2 2025 and H1 2025 of SAR 1.62 and SAR 3.12, respectively, compared to SAR 2.16 and SAR 4.15 as previously reported. Additionally, certain comparative figures have been reclassified to conform with the current year's presentation, with the key change relating to the separate presentation of other operating income and other income within the statement of profit or loss and other comprehensive income. No material risks, going concern uncertainties, or debt covenant breaches were disclosed in this announcement.

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