The net profits of United Electronics Company “eXtra” (4003) jumped by about 72.7% year-on-year in the second quarter of this year, reaching 106.5 million riyals.
Continued Brilliance
eXtra attributed its high profits to improved revenues.
Its gross profit also rose to 388.6 million riyals, compared to SAR 340 million during the second quarter of last year.
This came despite an increase in sales, distribution, and general and administrative expenses by 1.8%.
On another note, the company’s net profits grew in the first half of this year by about 37% year-on-year, reaching SAR 200.4 million.
So What
The company benefited from a quarterly revenue growth of about 10% year-on-year, recording SAR 2 billion.
This success was driven by a big sales season, with eXtra’s retail sector seeing an increase in sales volume.
Online sales also increased by 53% in the current quarter compared to the same period in 2023.
Some Context
Mohamed Galal, the company’s CEO, explained in an interview with Argaam that the continuous rise in revenues reflects eXtra’s growing market share.
It also demonstrates its strong position in the Saudi market, aligning with its ambitious growth plan and operational efficiency improvements.
He added that online sales achieved “one of the highest results” in the company’s online sales history.
This success is a result of continuous improvements in the digital platform, online shopping experience, and investment in enhancing e-commerce infrastructure.
He also mentioned that online sales accounted for 25% of the company’s total revenues, highlighting the company’s ability to meet changing customer needs and enhance its digital experience.
Now What
In an interview with Al Arabiya Business, Galal stated that eXtra is present in 28 Saudi cities.
He emphasized that the company’s strength lies in the fact that customers can order products, pick them up from the store, or have them delivered to their homes, noting that eXtra has made significant investments in technology.
Regarding the possibility of eXtra’s returning to invest in Egypt, Galal mentioned that the company is currently busy with major projects in the kingdom, including expanding with Panda Retail Company and developing the online sales sector.
Additionally, the company plans to publicly list its financing unit, Tasheel, and launch new products and programs.
