Although sales increased 3.3% as a result of the increase of most sections specially school and office supplies and smartphones, and although gross profit increased 4.7% as a result of increased sales and favorable sales mix but the net profit decreased 2.2% mainly due to:

- Decrease in other income which in the prior year included a capital gain of SR 38 million on a disposal of a parcel of land and also included insurance compensation of SR 11 million.

- Increase in selling and marketing expenses as a result of increased spending on ads to support sales and promotional offers.

Unmodified opinion

These estimated financial results for the year ended December 31, 2022 are prepared by the management of the Company and have not yet been audited by the external auditor.

None.

The difference between the comprehensive income and the net profit for the current year includes exchange losses of SR 29 million related to the subsidiary in Egypt as a result of the Egyptian authorities decision to devalue the Egyptian Pound currency against the foreign currencies including Saudi Riyal which started in March 2022. It also includes gain of SR 15.7 million resulting from remeasurement of end of service benefits provision.

In the fourth quarter of the current year, zakat provision of SR 17 million was reversed after the zakat Appeal Committee Ruling had been issued in favor of the company in most of the matters disputed with ZATCA related to years 2011 to 2015 especially the deductibility of dividends in excess of the opening balance of retained earnings. The company received the amended zakat assessments for these years in accordance with the appeal ruling.

Two new showrooms were opened during the period on 21/2/2022 and 8/9/2022 in Jeddah and Manama city in Bahrain respectively. A showroom in Madinah was opened on 5/12/2022 as a replacement. A showroom in Jeddah was closed on 12/5/2022 as part of the slums removal works in Jeddah governorate decided by the authorities.