eXtra profit dips 11% to SAR 390.5M in 2023; Q4 at SAR 126.2M

08/01/2024 Argaam Exclusive

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96.30
(0.90) (0.93 %)

United Electronics Co. (EXTRA)

United Electronics Co. (eXtra) reported an estimated net profit of SAR 390.5 million in 2023, a drop of 11% from SAR 440.2 million a year earlier.    



Financials (M)

Item 2022 2023 Change‬
Revenues 6,031.07 6,200.69 2.8 %
Gross Income 1,265.06 1,366.58 8.0 %
Operating Income 484.15 509.94 5.3 %
Net Income 440.17 390.46 (11.3 %)
Average Shares 80.00 80.00 -
EPS (Riyals) 5.50 4.88 (11.3 %)

The annual results were hurt by higher interest rates, which increased finance costs by SAR 46.3 million year-on-year (YoY).

 

The company recognized non-recurring losses of SAR 32.3 million in Q2 2023 as it discontinued its expansion plans in Egypt.

 

Further, selling and marketing, as well as general and administrative expenses increased, compared to the year-earlier period. Non-recurring revenue also weighed on eXtra’s annual profit.

 

On the other hand, the retail sector sales and consumer finance services reported growth. In addition, United Company for Financial Services (Tas’heel) reported a net profit of SAR 212.3 million in 2023, compared to SAR 193.6 million in 2022.

 

The fourth-quarter net profit grew 4% to SAR 126.2 million, from SAR 121.4 million in Q4 2022, driven by higher consumer finance revenue. Gross profit also increased by 4% to SAR 367.9 million from SAR 353.8 million in 2022.

 

Meanwhile, the retail industry was negatively impacted by a slight decline in sales.

 

Tas’heel’s net profit grew to SAR 55.2 million from SAR 49.5 million in Q4 2022.

 

The Q4 2023 bottom line also rose 6.7% from SAR 118.27 million in the previous quarter, thanks to seasonal changes in top line, higher revenue from eXtra’s services and better consumer finance revenue.



Current Quarter Comparison (M)

Compared With The
Item Q4 2022 Q4 2023 Change‬
Revenues 1,545.96 1,559.66 0.9 %
Gross Income 353.78 372.78 5.4 %
Operating Income 143.41 132.75 (7.4 %)
Net Income 121.39 126.08 3.9 %
Average Shares 80.00 80.00 -
EPS (Riyals) 1.52 1.58 3.9 %

Total shareholders’ equity, no minority interest, rose to SAR 1.28 billion as of Dec. 31, 2023, compared to SAR 1.13 billion a year earlier.  



Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2014 807.33 11.6 % 144.84 14.4 % 29.25 11.6 % 0.37
Q2 2014 984.29 1.3 % 167.96 4.8 % 53.77 0.9 % 0.67
Q3 2014 809.06 3.9 % 144.06 2.1 % 29.75 1.0 % 0.37
Q4 2014 1,088.69 19.1 % 163.90 (5.6 %) 8.28 (85.8 %) 0.10
Q1 2015 871.71 8.0 % 134.11 (7.4 %) 16.08 (45.0 %) 0.20
Q2 2015 879.50 (10.6 %) 138.51 (17.5 %) 11.83 (78.0 %) 0.15
Q3 2015 719.66 (11.0 %) 128.60 (10.7 %) 12.20 (59.0 %) 0.15
Q4 2015 1,273.91 17.0 % 176.00 7.4 % 9.07 9.7 % 0.11
Q1 2016 742.91 (14.8 %) 97.51 (27.3 %) (45.89) (385.4 %) (0.57)
Q2 2016 881.27 0.2 % 145.33 4.9 % 11.02 (6.8 %) 0.14
Q3 2016 745.45 3.6 % 133.06 3.5 % 6.16 (49.5 %) 0.08
Q4 2016 1,387.04 8.9 % 213.39 21.2 % 26.34 190.2 % 0.33
Q1 2017 804.67 8.3 % 134.40 37.8 % 12.99 128.3 % 0.16
Q2 2017 1,013.91 15.1 % 172.29 18.6 % 43.37 293.4 % 0.54
Q3 2017 777.96 4.4 % 150.59 13.2 % 26.13 324.1 % 0.33
Q4 2017 1,613.25 16.3 % 253.04 18.6 % 57.65 118.9 % 0.72
Q1 2018 864.61 7.4 % 152.75 13.6 % 21.57 66.0 % 0.27
Q2 2018 1,015.36 0.1 % 185.12 7.4 % 45.59 5.1 % 0.57
Q3 2018 894.82 15.0 % 172.16 14.3 % 30.95 18.5 % 0.39
Q4 2018 1,619.28 0.4 % 269.38 6.5 % 63.08 9.4 % 0.79
Q1 2019 1,057.51 22.3 % 187.98 23.1 % 33.83 56.8 % 0.42
Q2 2019 1,161.50 14.4 % 226.46 22.3 % 72.46 58.9 % 0.91
Q3 2019 1,034.56 15.6 % 185.82 7.9 % 27.23 (12.0 %) 0.34
Q4 2019 1,881.04 16.2 % 300.93 11.7 % 72.09 14.3 % 0.90
Q1 2020 1,232.25 16.5 % 220.77 17.4 % 34.68 2.5 % 0.43
Q2 2020 1,550.86 33.5 % 276.12 21.9 % 90.38 24.7 % 1.13
Q3 2020 1,224.52 18.4 % 225.59 21.4 % 53.44 96.2 % 0.67
Q4 2020 1,954.69 3.9 % 316.83 5.3 % 101.64 41.0 % 1.27
Q1 2021 1,364.33 10.7 % 260.21 17.9 % 81.20 134.1 % 1.01
Q2 2021 1,328.79 (14.3 %) 289.79 5.0 % 100.50 11.2 % 1.26
Q3 2021 1,373.10 12.1 % 280.17 24.2 % 89.00 66.6 % 1.11
Q4 2021 1,767.41 (9.6 %) 353.48 11.6 % 126.14 24.1 % 1.58
Q1 2022 1,411.98 3.5 % 290.17 11.5 % 97.51 20.1 % 1.22
Q2 2022 1,700.41 28.0 % 320.90 10.7 % 127.12 26.5 % 1.59
Q3 2022 1,372.71 0.0 % 300.21 7.2 % 94.16 5.8 % 1.18
Q4 2022 1,545.96 (12.5 %) 353.78 0.1 % 121.39 (3.8 %) 1.52
Q1 2023 1,438.14 1.9 % 313.88 8.2 % 84.44 (13.4 %) 1.06
Q2 2023 1,749.73 2.9 % 344.72 7.4 % 61.67 (51.5 %) 0.77
Q3 2023 1,452.18 5.8 % 334.21 11.3 % 118.27 25.6 % 1.48
Q4 2023 1,559.66 0.9 % 372.78 5.4 % 126.08 3.9 % 1.58
2023 6,200.69 2.8 % 1,366.58 8.0 % 390.46 (11.3 %) 4.88

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2014 17.85 % 6.24 % 4.91 %
Q2 2014 18.01 % 6.30 % 4.90 %
Q3 2014 17.93 % 6.28 % 4.87 %
Q4 2014 16.83 % 4.60 % 3.28 %
Q1 2015 16.25 % 4.19 % 2.87 %
Q2 2015 15.91 % 3.15 % 1.81 %
Q3 2015 15.88 % 2.72 % 1.36 %
Q4 2015 15.41 % 2.71 % 1.31 %
Q1 2016 14.95 % 1.10 % (0.35 %)
Q2 2016 15.13 % 1.00 % (0.38 %)
Q3 2016 15.15 % 1.01 % (0.40 %)
Q4 2016 15.69 % 1.78 % 0.49 %
Q1 2017 16.40 % 3.25 % 2.03 %
Q2 2017 16.53 % 4.02 % 2.78 %
Q3 2017 16.84 % 4.36 % 3.12 %
Q4 2017 16.87 % 4.76 % 3.56 %
Q1 2018 17.07 % 4.96 % 3.71 %
Q2 2018 17.36 % 5.09 % 3.76 %
Q3 2018 17.39 % 5.08 % 3.77 %
Q4 2018 17.74 % 5.02 % 3.67 %
Q1 2019 17.76 % 5.57 % 3.78 %
Q2 2019 18.08 % 6.11 % 3.86 %
Q3 2019 17.85 % 6.32 % 3.58 %
Q4 2019 17.55 % 6.79 % 3.58 %
Q1 2020 17.59 % 6.76 % 3.47 %
Q2 2020 17.26 % 7.19 % 3.86 %
Q3 2020 17.38 % 7.55 % 4.26 %
Q4 2020 17.43 % 7.76 % 4.70 %
Q1 2021 17.70 % 8.25 % 5.36 %
Q2 2021 18.60 % 8.34 % 5.73 %
Q3 2021 19.05 % 8.63 % 6.18 %
Q4 2021 20.29 % 9.49 % 6.80 %
Q1 2022 20.64 % 9.76 % 7.02 %
Q2 2022 19.91 % 9.50 % 6.76 %
Q3 2022 20.23 % 9.58 % 6.79 %
Q4 2022 20.98 % 9.83 % 6.96 %
Q1 2023 21.28 % 9.74 % 6.72 %
Q2 2023 21.49 % 9.66 % 6.50 %
Q3 2023 21.77 % 10.17 % 6.85 %
Q4 2023 22.03 % 10.06 % 6.91 %
2023 22.04 % 10.07 % 6.91 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2014 80.00 2.13 2.13 6.47
Q2 2014 80.00 2.14 2.14 6.74
Q3 2014 80.00 2.14 2.14 6.74
Q4 2014 80.00 1.51 1.51 6.47
Q1 2015 80.00 1.35 1.35 6.67
Q2 2015 80.00 0.82 0.82 6.61
Q3 2015 80.00 0.60 0.60 6.53
Q4 2015 80.00 0.61 0.61 6.65
Q1 2016 80.00 (0.16) (0.16) 6.09
Q2 2016 80.00 (0.17) (0.17) 6.22
Q3 2016 80.00 (0.25) (0.18) 6.31
Q4 2016 80.00 (0.03) 0.23 6.60
Q1 2017 80.00 0.71 0.97 5.87
Q2 2017 80.00 1.11 1.37 6.41
Q3 2017 80.00 1.36 1.56 6.35
Q4 2017 80.00 1.75 1.87 7.08
Q1 2018 80.00 1.86 1.98 6.68
Q2 2018 80.00 1.89 2.01 7.25
Q3 2018 80.00 1.95 2.07 7.25
Q4 2018 80.00 2.01 2.01 8.07
Q1 2019 80.00 2.17 2.17 7.46
Q2 2019 80.00 2.50 2.29 7.61
Q3 2019 80.00 2.46 2.18 7.34
Q4 2019 80.00 2.57 2.30 8.25
Q1 2020 80.00 2.58 2.31 7.91
Q2 2020 80.00 2.80 2.75 9.14
Q3 2020 80.00 3.13 3.13 9.11
Q4 2020 80.00 3.50 3.50 10.32
Q1 2021 80.00 4.08 4.08 9.77
Q2 2021 80.00 4.21 4.21 11.10
Q3 2021 80.00 4.65 4.65 10.80
Q4 2021 80.00 4.96 4.96 12.41
Q1 2022 80.00 5.16 5.16 11.81
Q2 2022 80.00 5.50 5.28 13.42
Q3 2022 80.00 5.56 5.31 12.78
Q4 2022 80.00 5.50 5.25 14.24
Q1 2023 80.00 5.34 5.09 15.31
Q2 2023 80.00 4.52 4.96 14.18
Q3 2023 80.00 4.82 5.30 14.22
Q4 2023 80.00 4.88 5.36 16.05

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2014 20.14 20.14 6.63
Q2 2014 21.37 21.37 6.77
Q3 2014 20.58 20.58 6.53
Q4 2014 19.84 19.84 4.64
Q1 2015 26.44 26.44 5.35
Q2 2015 45.96 45.96 5.73
Q3 2015 34.06 34.06 3.15
Q4 2015 29.17 29.17 2.70
Q1 2016 NEG NEG 1.91
Q2 2016 NEG NEG 1.89
Q3 2016 NEG NEG 1.28
Q4 2016 NEG More than 50 1.79
Q1 2017 21.61 15.79 2.60
Q2 2017 14.89 12.06 2.58
Q3 2017 17.41 15.22 3.73
Q4 2017 14.12 13.21 3.49
Q1 2018 19.10 17.94 5.31
Q2 2018 17.35 16.32 4.51
Q3 2018 17.30 16.30 4.65
Q4 2018 19.85 19.85 4.96
Q1 2019 17.32 17.32 5.03
Q2 2019 16.85 18.46 5.55
Q3 2019 18.56 20.90 6.21
Q4 2019 18.21 20.39 5.67
Q1 2020 13.88 15.53 4.53
Q2 2020 14.71 15.01 4.51
Q3 2020 16.69 16.69 5.74
Q4 2020 18.53 18.53 6.28
Q1 2021 19.29 19.29 8.06
Q2 2021 23.70 23.70 8.98
Q3 2021 22.98 22.98 9.91
Q4 2021 20.47 20.47 8.18
Q1 2022 19.32 19.32 8.45
Q2 2022 15.44 16.08 6.33
Q3 2022 14.83 15.54 6.46
Q4 2022 12.56 13.16 4.85
Q1 2023 14.55 15.27 5.08
Q2 2023 16.24 14.80 5.18
Q3 2023 15.66 14.25 5.31
Q4 2023 18.38 16.75 5.59

Business Segments (Million)

Compared With The
Period Retail / Wholesale Consumer Finance Other activities Consolidation adjustments & eliminations
Q1 2020 1,214.34 18.75 2.48 (3.32)
Q2 2020 1,525.80 25.91 2.19 (3.04)
Q3 2020 1,189.03 36.33 3.38 (4.59)
Q4 2020 1,898.20 49.64 10.72 (3.51)
Q1 2021 1,304.32 61.38 3.79 (5.16)
Q2 2021 1,257.45 71.70 3.80 (4.16)
Q3 2021 1,293.20 80.45 3.87 (4.41)
Q4 2021 1,675.79 87.38 9.53 (5.28)
Q1 2022 1,318.29 94.61 4.64 (5.56)
Q2 2022 1,604.59 96.75 4.99 (5.92)
Q3 2022 1,265.96 107.01 4.99 (5.24)
Q4 2022 1,429.17 118.59 5.41 (7.21)
Q1 2023 1,316.48 122.63 5.73 (6.70)
Q2 2023 1,623.39 127.34 5.84 (6.83)
Q3 2023 1,320.90 133.25 4.54 (5.53)
Q4 2023 1,420.00 140.64 5.95 (6.93)

Analysts Estimates (Million)

Item Q4 2023 (e) Q4 2023 (a) Change‬
Average 125.50 126.08 0.46 %

Estimates vs Actual (Million)

Item Q4 2023 (e) Q4 2023 (a) Change
SNB Capital 128.00 126.08 (1.5) %
Al Rajhi Capital 123.00 126.08 2.5 %

Current
Market Cap (M Riyal) 7,704.00
Enterprise Value (EV) (M) 8,713.25
Shares Outstanding ((M)) 80.00
EPS ( Riyal) (TTM) 5.00
Book Value (BV) ( Riyal) 15.37
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 17.59
P/E (TTM) 19.27
Price/book 6.27
Return on Average Assets (%) (TTM) 9.0
Return on Average Equity (%) (TTM) 32.6

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