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Logo of United Electronics Co. (eXtra)
United Electronics Co.’s (eXtra) Q2 2021 net profit was driven by improved profit margins and its consumer finance segment, Mohamed Galal, Chief Executive Officer (CEO), told Argaam in a telephone interview.
A decline in the second-quarter sales was expected, as the second quarter of 2020 was “exceptional”. eXtra was one of a few companies that operated during the COVID-19 overnight curfew in April last year, through its e-platform. In addition, the company was buoyed by a significant rise in demand before the implementation of tripled value-added tax (VAT).
Galal added that e-commerce contributed 22% to total sales in Q2 2021, down from 31% in the year-ago period. Accordingly, the segment’s market share reached 21.4% by the end of June 2021, compared to 25% a year earlier.
Last year’s market conditions helped accelerate the shift to e-commerce in 2021.
eXtra will continue focusing on customers and the development of their shopping experience to offer the best forms of multi-channel retailing. The company benefits from its regional and digital reach to provide the best products, ensure fast access to customers, and offer all solutions in the electronics and home appliances field, in addition to providing Sharia-compliant consumer finance services.
Galal added that he is bullish for the company’s future plans, backed by the strong potentials of the Saudi market and its demography, affirming this will help eXtra achieve growth in the retail and consumer finance sectors going forward.
The home appliance retailer reported a 11% year-on-year (YoY) rise in net profit after Zakat and tax to SAR 100.5 million for Q2 2021, Argaam reported.
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