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

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

TadawulAugust 10, 2025View on exchange

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	513.8	476.6	7.805	498	3.172
Gross Profit (Loss)	66.7	52.3	27.533	69.5	-4.028
Operational Profit (Loss)	35.6	36.7	-2.997	46.2	-22.943
Net profit (Loss)	29.5	35.8	-17.597	40.5	-27.16
Total Comprehensive Income	27.6	35.6	-22.471	37.8	-26.984
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	1,011.8	953.8	6.08
Gross Profit (Loss)	136.2	112	21.607
Operational Profit (Loss)	81.8	76.8	6.51
Net profit (Loss)	70	74	-5.405
Total Comprehensive Income	65.5	77.6	-15.592
Total Shareholders Equity (after Deducting Minority Equity)	613.9	600.4	2.248
Profit (Loss) per Share	0.175	0.185
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Amount	Percentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value	-	-
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is	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.
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	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.
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is	Revenues for the current quarter increased by 3.2% compared to the previous quarter, supported by improved revenues from the company’s main sectors, Business sector and Individuals sector, with increases of 5% and 1%, respectively. This aligns with the rising demand for manpower services in both sectors
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is	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
The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is	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.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is	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.
Statement of the type of external auditor's report	Unmodified conclusion
Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion)	NA
Reclassification of Comparison Items	Certain comparative figures have been reclassified and presented for the purpose of better presentation. However, the effect of those reclassifications was not significant.
Additional Information	-