eXtra’s Q2 revenue lifted by e-sales, electronics market likely to contract in Q3 2020: CEO

United Electronics Co.’s (eXtra) higher e-sales have largely contributed to better revenue in Q2 2020, chief executive officer, Mohamed Galal, told Argaam on Monday.

eXtra’s e-sales accounted for 25% of total sales in Q2 2020, compared to 10% a year earlier.

Galal said that he expects the electronics and home appliances market to contract in Q3 2020, due to the value-added tax (VAT) hike.

The contraction will continue for almost two months, until consumers realize changes to the remaining income to spend on discretionary commodities.

Moreover, Galal stressed that there is no change to eXtra’s future plans amid the COVID-19 pandemic. The company’s plans aim mainly to boost its market share, expand maintenance services and offer consumer finance services through Tasheel program.

“The recent changes might force us into modifying some dynamics to achieve our targets in the medium-and-long term,” Galal added.

The home appliance retailer posted an 18% rise in net profit after Zakat and tax to SAR 125.2 million for H1 2020, compared to SAR 106.3 million in prior-year period.

said that the second quarter 2020 results are expected to be excellent due to the strong performance of the company, adding that they will be disclosed soon.