eXtra Q3 2024 profit margin rises to lifetime high: CEO

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

United Electronics Co.'s (extra) 10.4% year-on-year (YoY) revenue growth in the third quarter of 2024 reflected its robust performance in the retail and the consumer finance segments, while cementing its leading position in the Saudi market, CEO Mohamed Galal told Argaam in an interview.

The top executive indicated that the retail segment’s third-quarter net profit recorded an increase of about 49% YoY, backed by sales growth and the 0.7% YoY rise in the profit margin to 24.3%, the highest in the company’s history.

Meanwhile, United Company for Financial Services (Tasheel Finance), which represents eXtra’s consumer finance segment, saw a 22.3% YoY revenue hike during the three-month period. This was driven by a 25% YoY expansion in its consumer finance portfolio, which pushed Tasheel’s bottomline 11% higher on an annual basis, the CEO further stated.

Galal confirmed that the planned listing of Tasheel’s parent company, United International Holding Co. (UIHC), on the Main Market (TASI) in Q4 2024 marks a major strategic step that is seen to support eXtra's financial strength and enable its future growth and expansion. It is also bound to enhance its ability to provide the best products and services to its customers in the Saudi market.

He indicated that the retail segment saw further growth in Q3 2024, as sales recorded a 9.3% YoY rise, thanks to the success of the company’s provision of an array of promotional offers such as the National Day discounts and the back-to-school promotional season.

The retail segment helped provide an improved, more streamlined shopping experience that features various products, distinguished customer service, and best prices, according to the CEO.

Galal also pointed out that eXtra's website and application upgrading is still underway. He noted that e-commerce sales continued to grow by 20.8% in Q3 2024, representing 23.1% of sales.

He explained that the website upgrade aligns with eXtra's strategy to provide a better online shopping experience, by offering multiple payment options and speedy product delivery.