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eXtra logo
United Electronics Co. (eXtra) maintained its outstanding operational performance after succeeding in managing the 2020 unprecedented changes, board chairman Abdullah Al-Fozan, told Argaam in an exclusive.
The company reported record sales of almost SAR 6 billion, and a record net profit of SAR280 million.
Since mid-2020, eXtra successfully managed supply chain disruptions, due to the COVID-19 pandemic outbreak in China, closure of malls and the curfew imposed in the Kingdom for five weeks during the second quarter of 2020, along with consumer shift to e-commerce during lockdowns.
The company adopted the highest precautionary measures after reopening its stores to maintain the safety of its customers and employees. eXtra successfully managed its annual mega sale despite the pandemic.
Elsewhere, CEO Mohammed Galal said that eXtra enhanced spending efficiency. Accordingly, selling and general expenses accounted for 11.7% of sales in 2020, down from 12.7% in 2019, despite an increase in operating expenses incurred by Tasheel unit, which commenced its operations in mid-2019.
The home appliance retailer’s market share reached 21.8% by the end of November 2020, compared to 19.4% a year earlier – the highest market share on record.
Moreover, the electronics and home appliance market is well-positioned for growth in the medium term, backed by the Kingdom’s demography, which will in turn support demand for electronics going forward, Galal added.
“On consumer finance level, Tasheel turned to profitability after one year of operation,” Galal noted, adding that the non-banking sector’s market share in finance services is still marginal, when compared to the size of finance market in Saudi Arabia.
eXtra reported a net profit after Zakat and tax of SAR 280.3 million for fiscal year 2020, up 36% year-on-year (YoY), Argaam reported.
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eXtra posts 36% profit rise to SAR 280.3 mln in 2020 |
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