IHRCO Revenue Surges 39% in Nine-Month Results

Riyadh, Saudi Arabia — International Human Resources Co. (IHRCO) reported a nine-month net profit of 7.11 million SAR for the period ending September 30, 2026, putting the firm just 1.46% ahead of the 7.01 million SAR recorded during the same period a year ago. At the same time, revenue surged 39% to 310.1 million SAR from 223.1 million SAR.

The discrepancy between the significant revenue increase and the modest profit growth stems from higher credit loss provisions, increased zakat expenses, and reduced government support.

The third quarter of 2026 showcased stronger performance, with revenue rising 35.1% to 107.1 million SAR from 79.3 million SAR in the same quarter of the previous year and a 10.4% increase from 97 million SAR in Q2 2026. Net profit for the period attributable to shareholders expanded by 22.7% year-on-year and an impressive 172% from the prior quarter, reaching 2.66 million SAR.

Operating profit for the nine months surged 95.1% quarter-on-quarter to 3.89 million SAR, indicating improved efficiency in core business operations.

Key factors contributing to this growth include the expansion of workforce outsourcing, which expanded the employee base across ongoing projects and new contracts. Despite the substantial profit increase, the nine-month period saw operating profit rise by 11.1% year-on-year to 10.38 million SAR, even with revenue pressure. Gross profit grew by 28.5% to 31.3 million SAR, surpassing cost increases.

The sharp rise in profit for the quarter-on-quarter was attributed to better trade receivable collections, which reduced the need for expected credit loss provisions. However, the first half of the year saw a decline in Human Resources Development Fund support, which negatively impacted the nine-month profit despite solid operating performance.

Additionally, higher credit loss provisions and zakat expenses, mainly during the first half, weighed on the overall result.