RIYADH: Shares of Saudi Arabia’s United Electronics Co., known as eXtra, extended early morning losses despite the news that it surged 18 percent in net profit over the first nine months of 2022.
Shares of eXtra slipped 3.09 percent at the end of Monday’s trading session at SR84.80 ($22.6).
The Khobar-based retailer’s profit rose to SR319 million, compared to SR271 million for the same period a year earlier, it said in a bourse filing.
The result was attributed to higher sales and consumer finance and services sector growth, which led to a gross profit increase of 10 percent.
eXtra’s revenues stood at SR4.5 billion in the first nine months of 2022, a 10 percent year-on-year rise from SR4.1 billion.
The company’s profits are set to grow despite inflation’s impact and high interest rate that is affecting the markets, CEO Mohamed Galal told CNBC Arabia.
eXtra's profit remained high because it relies mostly on electronic sales, which were not affected by inflation, according to the CEO.
The eXtra network, operating in 30 cities, will invest $50 million in Egyptian expansion during the first half of 2023.
“Egypt will be one of the main markets for the company in the next 5 years,” Galal said.
