Extra profits decrease to SAR 62 mln in Q2 by 52%

The United Electronics Company “Extra” net profit after zakat and tax decreased to SR 62 million during the second quarter, compared to SR 127 million in the same quarter of last year, by 52%. This came after today’s announcement of the estimated financial results for the period ending on June 30, 2023 (6 months).

The operating profit amounted to SR 125 million during the second quarter, compared to SR 124 million in the same quarter of the previous year, with a growth of 0.5%.

The net profit after zakat and tax during the 6-month period amounted to SR 146 million, compared to SR 225 million in the same period last year, a decline of 35%.

Earnings per share in the current period amounted to SR 1.83, compared to SR 2.81 in the same period last year.

The Company’s Net profit totalled SR 61.6m vs. SR 127.1m for the same quarter last year, impacted by continued increases in borrowing rates, as the total Company’s finance cost increased in Q2 by SR 13.5m vs. the same quarter last year, in addition to recognizing non-recurring losses during the second quarter equivalent to SR 38m due to discontinuing the Company’s expansion plan in Egypt. Despite this, The Company’s revenue grew slightly by 2.3% vs. the same Q last year, and supported by Consumer Finance Sector revenues growth, The Company’s gross profit increased by 6.6% vs. the same Q last year to register SR 342.1m vs. SR 320.9m for same Q last year. in addition to that, The Company’s SG&A slightly increased vs. the same Q last year, and the other income decreased by SR 19.8m vs. the same Q last year. It’s worth noting that United Company for Financial Services achieved a net profit of SR 49.7m vs. SR 45.1m for the same Q last year, achieving growth of 10.1% Y-o-Y.

The Company’s Net profit totalled SR 61.6m vs. SR 84.4m for the previous Q, impacted by the recognition of non-recurring losses during the current quarter equivalent to SR 38m due to discontinuing the Company’s expansion plan in Egypt, despite the increase of Company’s revenues in the current Q vs. Previous Q by 20.9% due to the seasonal change of the Company’s revenues which led to higher gross profit vs. Previous quarter.

The Company’s Net profit totalled SR 146m vs. SR 224.6m for the same period last year, impacted by continued increases in borrowing rates, as the total Company’s finance cost has increased in H1 by SR 28.3m vs. the same period last year, in addition to recognizing non-recurring losses during the period equivalent to SR 38m due to discontinuing the Company’s expansion plan in Egypt. Despite this, The Company’s revenue grew slightly by 2.1% vs. the same period last year and supported by Consumer Finance Sector revenues growth and Retail sector sales mix enhancement, The Company’s gross profit increased by 7.3% vs. the same period last year to register SR 655.9m vs. SR 611.1m for the same period last year. in addition to that, The Company’s SG&A slightly increased vs. the same period last year, and the other income decreased by SR 22.6m vs. the same period last year.

It’s worth noting that United Company for Financial Services achieved net profit of SR 103.8m vs. SR 98.9m for same period last year, achieving growth 4.9% Y-o-Y.

Statement of the type of external auditor’s report: Unmodified conclusion

The company explained that these estimated financial results for the period ended 30 June 2023 are prepared by the management of the Company, and these results are not reviewed by the external auditors, and the Company’s EPS has been adjusted after the capital increase, which has been approved by the extraordinary general assembly which held on 5th of Oct-2022.