Riyadh, Saudi Arabia — Saudi Arabia’s United Electronics Company (eXtra) reported a 35 percent drop in H1 2023 net profit to SAR 146 million ($38.91 million) from SAR 224.6 million in the first half of 2022.
Argaam reported that eXtra was hurt by an increase of SAR 28.3 million year-on-year (YoY) in borrowing costs during the six-month period. The company recognized non-recurring losses of SAR 38 million, as it discontinued its expansion plans in Egypt.
The company’s revenue increased slightly by 2.1 percent YoY, backed by the consumer finance segment revenues growth and retail segment’s sales mix enhancement, Argaam said.
Gross profit increased by 7.3 percent YoY to SAR 655.9 million. Selling, general and administrative expenses (SG&A) slightly increased compared to H1 2022. Other income decreased by SAR 22.6 million YoY. Further, United Company for Financial Services (Tas’heel) reported a net profit of SAR 103.8 million, compared to SAR 98.9 million in H1 2022.
The second-quarter net profit dipped 52 percent to SAR 61.6 million from SAR 127.1 million in Q2 2022 on a rise in borrowing costs by SAR 13.5 million YoY. Other income dropped by SAR 19.8 million YoY.
