Tamkeen’s 2024 net profit up 43% to SAR 86M; Q4 at SAR 17M

Tamkeen Human Resource Co. reports 43% net earnings jump to SAR 86 million in 2024, compared to SAR 59.8 million in 2023.

This was buoyed by a 45.5% year-over-year (YoY) increase in gross revenue.

Gross profit rose by 28.7% YoY due to the strong performance of the corporate services and subsidiaries. Revenue from this segment grew by 91%, which translated into a 60.2% increase in gross profit.

Meanwhile, the individual services segment saw a 35.5% decline in gross profit, mainly due to a drop in segment revenue.

Operating profit grew by 27.6% YoY despite a 24.8% increase in general and administrative expenses. The rise in expenses was mainly driven by a 26.5% increase in salaries and employee benefits.

Additionally, expected credit losses increased by SAR 4.6 million, based on an ECL model prepared by an external advisor, in line with the growth in trade receivables.

Other non-operating income increased by SAR 11.9 million YoY, primarily due to capital gains from the sale of a company-owned land plot in Al Narjis District.

The sale generated SAR 13.1 million, resulting in a capital gain of SAR 9.6 million after deducting the land’s book value of SAR 3.5 million. Furthermore, provisions no longer required were reversed at SAR 2.5 million.

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