- Despite the increase of sales at 18.8% due to the increase in most sections, especially smartphones and video games, the gross profit witnessed a slight decrease due to the sharp decline in school supplies sales compared to the same quarter of last year, which witnessed the resumption of the study in full attendance for the primary and kindergarten stages for the first time after Covid 19 restrictions. Gross profit was also affected by a relative decrease in profit margins. Despite the increase in selling and marketing expenses to promote sales, this did not much affect the net profit due to the increase of other revenues, and thus the decline in net profit was limited to 1.4%.

Despite the increase of sales at 5.4%, mainly due to the increase in the smartphones and video games sections, the gross profit witnessed a decrease by 5.2% due to the relative decrease in profit margins and the change in the sales mix towards the relatively less profitable sections. Although the decrease in selling and marketing expenses has offset most of the decrease in gross profit, the decrease in net profit for the current quarter compared to the previous quarter is mainly due to the reversal of zakat provision of 17 million Riyals in the the previous quarter following the issuance of the appeal ruling in favor of the company in most of the items that were in dispute with ZATCA for the years 2011 to 2015.