The Clap
The net profit of United Electronics Company eXtra (4003) jumped by about 11% annually during the first quarter of the current year, reaching approximately 94 million riyals.
Retail
The high quarterly profits of the company, known for retailing electronic, home, and communication devices in Saudi Arabia, Bahrain, and Oman, came as a result of “significant growth” in its revenues.
These revenues reached approximately 1.5 billion riyals, compared to 1.4 billion riyals during the first quarter of 2023.
This is due to the “stability of demand” in the retail market within the Kingdom, according to eXtra.
So What
The sales volume of the company’s retail sector increased, driven by an increase in online sales. Additionally, revenues of its consumer finance sector also increased during the current quarter, due to the growth of the consumer finance portfolio by 19%.
Now What
Mohammed Jalal, CEO of eXtra expects the completion of the initial public offering (IPO) of its subsidiary “United International Holding Company” by 30%, which owns “Tasheel Finance.”
This is expected to occur at the end of the second or fourth quarter of the current year, where a portion of the IPO proceeds will be used to repay part of eXtra’s loans, approximately 190 million riyals.
Jalal added in an interview with “Al Arabiya Business” that the IPO is a “very important request” from all investors in the company, which makes him expect the general assembly to approve the decision.
