eXtra CEO says bringing mega sale forward boosts Q2 financials, challenges continue

Mohamed Galal, CEO of United Electronics Co. (eXtra)

United Electronics Co. (eXtra) posted robust results during the second quarter, in particular, and the first half of 2022, in general, on launching the annual mega sale in Q2 instead of Q4 of every year, Managing Director and Chief Executive Officer (CEO) Mohamed Galal told Argaam.

The move was based on thorough studies and pre-defined plans to provide the necessary inventory to maximize customers’ benefit before summer.

According to the latest reports, spending on the electronics and home appliances sector in the Kingdom narrowed by nearly 10% year-on-year (YoY) during the first five months of 2022.

However, the company’s yearly revenues rose, indicating market share growth during the same period.

Galal pointed out that the growth in consumer finance services revenue during H1 2022 positively impacted gross profit compared to last year’s period.

eXtra witnessed an improvement in semi-annual net profit, despite higher selling and operating expenses, as well as general and administrative expenses.

The CEO stated that Q2 2022 financials affirmed the company’s success in serving customers in the way they aspire to, which reflects its constant quest to achieve operational excellence by developing its operations and working flexibly to keep pace with all circumstances and challenges.

“There is no doubt that we are still facing many challenges that negatively affect the local and global electronics and home appliances business,” Galal said.

The current economic and geopolitical challenges are expected to cast a shadow on H2 2022 performance across most sectors, not just electronics and home appliances retail.

In addition, lifting travel restrictions is estimated to negatively affect purchasing power during summer.

Despite all the factors mentioned above, eXtra is confident of the operational capabilities that enable it to deal with these unfavorable conditions and work with partners to provide the best retail services across all industries.

According to data compiled by Argaam, eXtra reported a 24% increase in estimated net profit after Zakat and tax to SAR 224.6 million for H1 2022, compared to SAR 181.7 million in the previous year.