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United Electronics Co. (eXtra) is planning to open two new stores this year and complete its online platform in Q2 2019, chief executive Mohamed Galal told Argaam in an exclusive on Tuesday.
A new branch was launched in Q1 2019.
Meanwhile, the home appliance retailer will offer additional Islamic consumer finance services upon obtaining a final license from the Saudi Arabian Monetary Authority (SAMA).
“Consumer finance products will play a key role in diversifying eXtra’s income sources and maximizing its profit going forward,” Galal said.
In November 2018, eXtra received an initial approval from SAMA to establish a consumer finance firm, Argaam reported.
eXtra’s Q1 2019 profit growth was driven by improved sales mix in some divisions, particularly large appliances, where the company aims to boost its market share in the medium run.
In addition, growth in installment and after-sale services when compared to Q1 2018 also lifted profit.
eXtra reported a net profit after zakat and tax of SAR 34 million for the first quarter of 2019, a 57.7 percent year-on-year (YoY) increase.
“The company is continuing to enhance its positions in the electronics and home appliance sector through garnering a higher market share, improving return on assets and opening new showrooms,” Glalal added.
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