‎“Abo Moati” subsidiary announces that the HP brand ‎distribution agreement will not be renewed

Abdullah Saad Abo Moati Company for Libraries that its subsidiary (Al-Mouja Trading) did not renew the HP trademark distribution agreement, according to the joint agreement between the two parties on 01/05/2023 AD, as the agreement ends on 30/ 06/2023 AD.

The company would like to disclose to the shareholders the following:

Sales of the HP brand amounted to 78.5 million riyals (seventy-eight million five hundred thousand riyals), representing 28% of the consolidated sales of the group according to the fiscal year ending on 03/31/2022 AD, and sales for the same brand during the period The nine months ending on 12/31/2202 AD amounted to 37.8 million riyals (thirty-seven million and eight hundred thousand riyals), which represents 15% of the consolidated sales of the group during the period ending on this date.

Financial impact: The company expects that this decision will have a financial impact, represented by a decrease in sales of the HP brand, starting from the beginning of the second fiscal quarter of the fiscal year that ends on 03/31/2024.

The management noted that this decision came due to the company’s desire to focus on sectors with good profitability.