Tamkeen Human Resource Co. announces its Interim Financial results for the Period Ended 2025-09-30 (Nine Months)

This increase was mainly driven by:

Corporate and subsidiary services revenue, which recorded a notable growth of 36.6% (SAR 53.7 million), primarily due to a 32.4% increase in the average number of deployed resources, reflecting higher demand from clients across various corporate sectors.

Individual services revenue, which increased by 13.9%, supported by a 2.7% rise in the average number of deployed resources.

This decline was mainly attributable to a decrease in other non-operating income, while the key operating and non-operating items were as follows:

Revenue increased by 31.1% compared to the same quarter of the previous year.

Gross profit grew by 31.3% year over year, driven by the improved performance of the Corporate and Subsidiary Services segment and the Individual Services segment. Revenue from Corporate and Subsidiary Services rose by 36.6%, leading to a 23.4% increase in gross profit for this segment. Meanwhile, revenue from the Individual Services segment increased by 13.9%, resulting in a 125.1% rise in its gross profit.

Operating profit increased by 57.8% compared to the third quarter of the previous year, despite a SAR 1.4 million increase in the expected credit loss provision, which was calculated based on the Expected Credit Loss (ECL) model prepared by an external consultant. This increase reflects the growth in trade receivables, which was directly linked to the company’s higher revenue levels.

Other non-operating income decreased by SAR 10.2 million compared to the same quarter of the previous year, mainly due to the decline in gains from asset sales recognized in Q3 2024. In that period, the company recorded capital gains of SAR 9.6 million resulting from the sale of a company-owned land plot in the Al-Narjis district, which was sold for SAR 13.1 million, net of the land’s book value of SAR 3.5 million.

Excluding the capital gains from the land sale recorded in the third quarter of 2024, the Company’s net profit increased by 47.8%, equivalent to SAR 7.5 million, during the third quarter of 2025.

This decrease was mainly attributable to:

The Corporate Services segment, which recorded a 4.7% decrease in revenue (SAR 9.9 million), driven by a 6.0% decline in the average number of deployed resources.

The Individual Services segment, which reported a 2.1% decrease in revenue, primarily due to a 5.1% decline in the average number of deployed resources.

This decline was mainly attributable to the following factors:

A 4.2% decrease in consolidated revenue compared to the previous quarter.

Gross profit declined by 5.7% (SAR 2.6 million) compared to the previous quarter, mainly due to a 3.9% (SAR 1.5 million) decrease in gross profit from the Corporate and Subsidiary Services segment, reflecting intensified market competition. Additionally, the Individual Services segment recorded a 15.7% (SAR 1.1 million) decrease in gross profit, affected by price reductions resulting from seasonal factors.

Operating profit decreased by 8.9% (SAR 2.4 million) compared to the previous quarter, primarily due to the decline in gross profit of SAR 2.6 million.

This increase was mainly attributable to the following:

Corporate and Subsidiary Services revenue recorded a significant increase of 65.6% (SAR 238.7 million), primarily driven by an 84.3% rise in the average number of deployed resources, reflecting higher client demand across various corporate activities.

Individual Services revenue increased by 10.3%, supported by a 6.0% growth in the average number of deployed resources.

This increase was mainly attributable to the following factors:

Revenue increased by 49.9% compared to the corresponding period of 2024.

Gross profit rose by 44.9%, mainly driven by an increase in gross profit from the Corporate and Subsidiary Services segment by 48.5%, and from the Individual Services segment by 26.7%.

Operating profit increased by 54.3% compared to the same period of 2024, despite a 17.1% increase in general and administrative expenses and selling expenses. The increase in expenses was mainly due to higher provisions for advances paid to external recruitment offices, and higher salaries and employee benefits, reflecting the company’s investment in human capital. In addition, the expected credit loss (ECL) provision increased by SAR 8.8 million, based on the ECL model prepared by an external consultant in line with the increase in trade receivables, which resulted directly from higher company revenues.

Other non-operating income decreased by SAR 10.4 million compared to the corresponding period of the previous year, mainly due to the decline in gains from asset sales recorded in Q3 2024, which amounted to SAR 9.6 million. These gains were related to the capital gain from the sale of a company-owned land plot in the Al-Narjis district, sold for SAR 13.1 million, resulting in capital gains of SAR 9.6 million after deducting the land’s book value of SAR 3.5 million.

It is also worth noting that when excluding the capital gains resulting from the sale of land during the third quarter of 2024, the net profit recorded a growth of 45.3%, representing an increase of SAR 24.1 million.

As for the interim financial statements for the three months and nine months periods ended September 30, 2024, the same auditor issued an unmodified review conclusion on 3 Jumada Al-Awwal 1446H (corresponding to November 5, 2024).