eXtra’s profits surge 6.4%, sales 19.9%

United Electronics Company (eXtra), Saudi Arabia's fastest-growing big box consumer electronics and home appliance retailer, yesterday announced its initial financial results for the second quarter of 2012, demonstrating the continued success of the company's store expansion strategy and customer-centric approach.
For the three months ending June 30, 2012, eXtra reported a net profit of SR 48.4 million, compared to SR 45.5 million for the same quarter in 2011, an increase of 6.4 percent.
Net profit for the six months ending June 30, 2012, is SR 72.1 million, compared to SR 64.5 million for the same period of 2011, an increase of 11.8 percent.
For the second quarter of 2012, eXtra reported total sales of SR 726 million, compared to SR 651 million for the same quarter of last year, an increase of 11.6 percent. Total sales for the six months ending June 30 are SR 1.35 billion, compared to SR 1.13 billion for the same period of 2011, an increase of 19.9 percent.
Earnings Per Share during the six months ending June 30, 2012, are SR 3.01, compared with SR 2.69 for the same period last year.
Abdullah Abdulatif Al-Fozan, chairman of eXtra, said: “Our success in the first half of 2012 has been driven by various factors which include our aggressive store expansion strategy which has seen our Kingdomwide network increase from 19 branches in the second quarter of 2011 to 27 today, along with positive growth in our existing stores. In addition, a key contributor to the Q2 results was our continued investment in the smart phone segment, like the Samsung Galaxy SIII, which eXtra was the first in the market to offer, which helped to increase our market share.
Strong marketing initiatives have also helped drive traffic which saw an increase of 20 percent during the last six months.
All these factors, along with our continued focus on our customers' requirements and our never ending devotion to offering the best prices, greatest range of products and customer driven services, such as our “Pro Clean” preventative air conditioning maintenance service which proved to be highly popular ahead of the summer season, continue to be reflected in our positive financial performance.”