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Saad Abo Moati, Chairman of Abdullah Saad Mohammed Abo Moati for Bookstores Co.
The demand for new school products and office equipment is expected to improve as students return to schools and economic activities resume, Saad Abo Moati, Chairman of Abdullah Saad Mohammed Abo Moati for Bookstores Co. (Abo Moati), told Argaam in an exclusive.
The demand is likely to return to pre-COVID-19 levels, he added.
The start of the new academic year after about two months and the addition of a third semester will boost the stationery segment, along with office activity helping achieve better sales and profits.
The company's main business activity – wholesale of stationery and office products – was impacted during the coronavirus crisis. As schools moved to online mode of education, the company's sales and earnings were negatively affected, he said.
The chairman pointed out that the company plans to expand in the retail segment by opening new branches of the Korean brand “iLahui”.
The firm has been working in the retail segment for five years and opens three to four new branches annually, he added.
The Tadawul-listed company also aims to expand and grow at a faster pace amid the fading effects of COVID-19 on the market.
The firm has excellent real estate assets, as it owns most of the showrooms, offices, and stores, which helped it to withstand the negative conditions during the pandemic, Abo Moati said.
He added that the company leases the real estate assets it does not need, but rental returns decreased slightly due to the impact of coronavirus.
However, these are temporary factors and do not represent a concern for the company, as the market value and real estate rents are expected to rise over the coming period, the chairman concluded.
The company's net profit for the fiscal year ended March 2021 reached SAR 5.3 million, a decline of 62% compared with SAR 13.9 million a year earlier.
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