Extra profits decline by 11% to SAR 390.4 mln in 2023 

The net profit of United Electronics Company (Extra) decreased to 390.4 million riyals in 2023, compared to 440.1 riyals in the year before last, by 11.2%. This came after today’s announcement of the annual financial results ending on December 31, 2023.

The total profit from operations in the current year amounted to 1.36 billion riyals, compared to 1.26 billion riyals in the year before, an increase of 7.6%.

After excluding non-controlling interests, total ownership rights amounted to 1.28 billion riyals, compared to 1.13 billion riyals in the year before last, an increase of 12%.

Earnings per share in the current year amounted to 4.88 riyals, compared to 5.5 riyals in the year before last.

According to the company, its revenues have increased by 2.8% in the current year compared to last year, registering SAR 6.2 billion compared to SAR 6.0 billion for last year. This increase is attributed to a marginal increase in retail sector sales and revenues from extra services and consumer finance growth.

The company’s overall gross profit saw a boost from changes in the retail segment’s sales mix and a rise in earnings from Extra services and consumer finance, resulting in a 7.7% increase in gross profit for the current year compared to the previous year. However, the positive trend was offset by the negative impact of higher lending rates, which increased financing costs by SAR 47.4 million over the last year. Additionally, the company incurred one-off losses amounting to SAR 32.3 million in the second quarter due to discontinuing its expansion plans in Egypt and increased sales, marketing, and administrative expenses over the last year and one-time income from the prior year. Consequently, the company’s net profit in 2023 decreased by 11.3% from 2022, recording SAR 390.5 million compared to SAR 440.2 million last year. Notably, the United Company for Financial Services reported a net profit of SAR 212.3 million, up from SAR 193.6 million in 2022, showing a 9.7% increase.