Saudi market restructuring set to benefit eXtra, says CEO

United Electronics Co. (eXtra) will be bolstered by the current restructuring of the local electronics and home appliance market, as the market will shift towards organized retailing, Mohamed Galal, the company’s chief executive officer, told Argaam in an exclusive on Monday.

The home appliance retailer reported strong set of results for the first half of the year, despite a continued stagnation in the Saudi electronics market.

Sales rose 3.4 percent year-on-year (YoY). Gross profit also saw a 10 percent growth YoY in the same period, translating into a 19.2 percent YoY increase in the first-half net profit.

The earnings were mainly driven by better sales mix, preferential prices, in addition to the company’s unique services, and its consumer finance program.

“The company proceeds to enhance its leading position in the Saudi retail market, targeting an unprecedented growth in its market share, reaching more customers across the Kingdom through opening new stores in addition to its online sales portal,” Galal said.

eXtra seeks to enhance its strategic partnerships with Dubai-based Noon.com along with other global and local manufacturers and suppliers.

The company is also aiming to improve its products and installment services to maintain its leading position in the region’s electronics and home appliance products, he added.