eXtra’s Q3 2022 net profit lifted by consumer finance growth: CEO

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

United Electronics Co.’s (eXtra) higher net profit in Q3 2022 was triggered by a 27% rise year-on-year (YoY) in the company’s financing portfolio and growth in the consumer finance sector, Managing Director and CEO Mohamed Galal told Argaam. 

United Company for Financial Services (Tas’heel) reported a net profit of SAR 45.2 million in Q3 2022, compared to SAR 35.5 million in the year-earlier period.  

E-commerce sales also contributed 19.8% to eXtra’s total sales in the third quarter.   

This contribution was in line with the company’s estimates of 22.8% in the same period of 2021, as customers preferred buying online in the last two years.

Galal added that the quarterly results build on the company’s success this year, especially amid the current challenges.

The ongoing geopolitical and economic changes might somehow affect the retail industry, but only in the short term. The Kingdom’s unique demography and solid economy will act as strengths, on which eXtra will depend to deliver growth in the retail and consumer finance sectors.

The home appliance retailer reported an 18% jump in estimated net profit after Zakat and tax to SAR 318.8 million for the first nine months of 2022, compared to SAR 270.7 million in the previous year. The third-quarter net profit stood at SAR 94.2 million, Argaam earlier reported.