United Electronics Co. (eXtra) was able to achieve significant growth of 10% in revenues during the first quarter of the current year, compared to the same period last year. This affirms the success of eXtra’s growth strategies and the successful implementation of operational plans, reinforcing the company’s strong position in the Saudi market.
In an interview with Argaam, Mohamed Galal, Managing Director and CEO of eXtra, said that the company’s net profit reached SAR 93.9 million in the first quarter of 2024, compared to SAR 84.4 million in the same quarter of the previous year, marking an increase of 11.2%. This increase was directly driven by the significant improvement in revenues.
The higher sales were significantly supported by the significant increase in online sales, reflecting the notable improvement in shopping through the company’s website and the newly released application.
Additionally, eXtra’s promotional offers contributed to this growth.
“We witnessed a 10% increase of in total profit to SAR 344.4 million in this quarter, compared to SAR 313.9 million in Q1 2023. It is worth noting that this improvement came despite a 10% increase in selling, distribution, general, and administrative expenses,” Galal added.
He also pointed out the restoration of stable demand in the retail market within the Kingdom, highlighting the significant improvement in the sector’s sales through the company during the first quarter of the current year, with a rise of 9.6% compared to the same quarter of the previous year.
These developments reflect the company’s commitment to continuous investment in enhancing e-commerce infrastructure, as online sales witnessed exceptional growth of 41% year-on-year (YoY), representing nearly 26% of the total sales volume.
Regarding United Company for Financial Services (Tasheel Finance), Galal said the company significantly increased the size of its financing portfolio for the customer base. The portfolio value grew to over SAR 2 billion, achieving a 19% YoY growth rate.
This growth reflects the company’s commitment to developing its products and improving the efficiency of services provided through its digital channels, which constitute the majority of the company’s revenues.
Furthermore, Tasheel greatly benefited from the continuous growth in the consumer finance sector, adding that the company has succeeded in building an integrated financial services system that meets the aspirations of the Saudi market, enhanced by modern financial technology.
Tasheel’s net profit reached SAR 52.4 million in the first quarter of 2024, compared to SAR 54.1 million in the corresponding quarter of the previous year. The results of the previous quarter were bolstered by the periodic update of mechanisms for calculating the expected credit loss provision of SAR 5.5 million. Adjusting for this impact, the actual growth rate in Tasheel’s net profits would be 7.9%, implying the strength of the company’s financial and operational performance, Galal explained.
He also highlighted that the various initiatives implemented by the company – including the “Joud” loyalty program, the alliance with “Panda,” among others – will fuel future growth plans. The distinctive demographic composition of the Kingdom and its strong economy are fundamental for medium and long-term market development. eXtra is steadily moving towards growth, development, and success, Galal concluded.
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