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Logo of United Electronics Co.
United Electronics Co. (eXtra) posted strong financial results in Q1 2022 despite challenges weighing on the global and local electronics and home appliances markets, CEO Mohamed Galal said.
In a statement to Argaam, Galal added that e-commerce sales grew to 22.5% of the company's total sales in Q1 2022, compared to 21.7% in the same period last year.
The ongoing supply crunch for semiconductor chips, supply chain disruptions and higher shipping prices as a result of the surge in energy prices represented the main challenges for the sector, with a 25% year-over-year (YoY) increase in average price of some product categories, according to the CEO.
Galal also indicated that eXtra has managed to gain more market share amid these challenges. The growth in revenues of the company’s consumer finance segment directly contributed to higher gross profit, as revenues of Tasheel grew by nearly 54% YoY.
Despite the lack of market transparency as a result of geopolitical developments that may affect the global economy in general and the sector in particular in the short term, the company is more resilient to deal with any changes that may affect its operations, the top executive stated.
Galal also expressed his optimism about achieving high growth rates in 2022 through the company's various segments, in a bid to continue working on developing the concept of multi-channel retail.
In Q1 2022, eXtra's profit rose to SAR 97.5 million from SAR 81.2 million during the same period in 2021, according to Argaam's data.
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