Abdullah Saad Mohammed Abu Moati Libraries Company announced a net profit increase for the nine-month period ending December 31, 2023, reaching SAR 22.36 million. This represents a slight but positive increase of 1.9% compared to the SAR 21.94 million recorded in the same period of the previous year, reflecting the company's stable financial performance and its ability to achieve sustainable growth.
In its official statement published on the Saudi Stock Exchange (Tadawul), the company attributed this increase in profits to a combination of successful administrative and financial factors. It explained that the primary reason was the significant decrease in selling and marketing expenses during the current period, indicating the adoption of more efficient and focused marketing strategies. Furthermore, lower financing costs contributed to increased net profit, suggesting an improved financial structure or better financing conditions for the company. The company also cited a decrease in the zakat provision as another factor supporting profit growth.
General context and historical background
Founded in 1994, Abu Moati Company is a leading retailer and wholesaler of office supplies, stationery, and art supplies in Saudi Arabia. Throughout its history, the company has built a strong reputation by providing a wide range of high-quality products, becoming a go-to destination for students, professionals, and artists alike. The company's listing on the Nomu Parallel Market reflects its ambition for expansion and growth, and offers investors the opportunity to participate in its success story.
The importance of the results and their expected impact
These financial results are particularly significant on several levels. Domestically , this positive performance underscores the resilience of the Saudi retail sector and its ability to adapt to economic changes. It also strengthens investor confidence in the company's stock and highlights its management's success in controlling costs and maximizing profitability, which aligns with the goals of Vision 2030 aimed at empowering the private sector and enhancing its role in economic development.
Regionally , Abu Moati’s success story in improving operational efficiency offers a model that similar companies in the Gulf region can learn from, especially those operating in competitive sectors. Internationally , the consistent performance of listed Saudi companies like Abu Moati sends positive signals to foreign investors about the strength and resilience of the Saudi economy as one of the world’s leading emerging markets.
