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United Electronics Co. (Extra) has reported its highest ever sales, on both an annual and quarterly basis, chief executive Mohamed Galal told Argaam.
The retailer’s sales in Q4 2017 reached SAR 1.6 billion, rising 16.3 percent year-on-year (YoY). For fiscal year 2017, the company reported SAR 4.2 billion in sales, a 12.1 percent YoY increase, he said.
Despite the slowdown in the electronics market last year, Extra was able to increase sales by boosting market share. The retailer also reported strong results from its end-of-year mega sale, Galal added.
Extra’s market share stands at more than 13 percent of the Kingdom’s electronics market, according to the most recent reports, he said.
The company reported a net profit of SAR 57.6 million in Q4 2017, more than double from SAR 26.3 million a year earlier. Net profit for the whole year came in at SAR 140.1 million, compared to a net loss of SAR 2.4 million in 2016.
The increase in earnings was driven by an improvement in the sales mix across all departments, as well as growth in the aftersales and installments services, Galal said.
Extra opened one store in Riyadh by the end of Q3 2017, an indication of the company’s ability to achieve strong results from brick-and-mortar stores as well as online sales.
Looking forward, the retailer plans to increase market share through opening new showrooms and developing its online portal to reach more customers, the CEO said.
He added that Extra is also seeking new strategic partnerships, like its deal signed in November with Noon.com, making it the platform’s exclusive supplier of electronics and home appliances in Saudi Arabia.
Related News
eXtra turns to profit of SAR 140 mln in FY17 |
Extra's partnership with Noon.com to boost market share, says CEO |
eXtra launches partnership with Noon.com |
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