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“Extra” for Arabic: 32 million riyals, losses due to the cessation of activities in Egypt
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Muhammad Jalal: 1.3 billion riyals, the company’s total debt
Dubai – Al Arabiya.net
Published on: January 8, 2024: 11:45 am GST. Last updated: January 8, 2024: 2:44 pm GST
The CEO of the United Electronics Company “Extra”, Mohamed Galal, said that the company’s results in the fourth quarter of 2023 were excellent, considering that the next FIFA World Cup was held in the same quarter of 2022 and this affected sales of televisions and hearing aids.
Jalal added in an interview with Al Arabiya Business today, Monday, that e-commerce recorded a growth of 22.7% in the fourth quarter of 2023, compared to 17% in the same quarter of 2022, following improvement in electronic sales, as he said, is currently achieving excellent results.
While the company’s annual profit fell by 11.28% to about 390.5 million riyals, the CEO said that the results for 2023 were very good, although they were lower than those of 2022, due to losses in 2023 The suspension of the company’s plans came with activity in Egypt worth 32 million riyals and rising interest rates. With a value of 47 million riyals as a result of the increase in interest rates.
Regarding “Extra’s” announcement of its intention to conduct an IPO for its subsidiary United International Holding Company. This is the company that owns United Financial Services Company (Tas’heel), which provides non-banking financing services to its customers. Jalal said that Tas’heel’s offering is part of its success. With a larger investor base, as “Tas’heel” has a very big future, which will improve the budget and provide greater expansion opportunities. In the future, “Extra” will retain a 70% stake in the holding company to which “Tas’heel” belongs.
We are working on specific initiatives regarding the use of the proceeds from the issue, which will be announced in due course.
He explained that the listing of “Facilitation” is awaiting approval from the Capital Markets Regulatory Authority and the approval provides for a period of six months for the implementation of the offer and accordingly the offer will be completed in due course.
Muhammad Jalal said that the total debt amounts to 1.3 billion riyals, while interest rates are expected to fall in 2024 and part of the proceeds from the Tas’heel offering will be used to reduce debt and improve the budget.
United Electronics Company “Extra” net profit for fiscal year 2023 decreased by 11.28% to about 390.5 million riyals, compared to a net profit of 440.16 million riyals in 2022.
In the fourth quarter of last year, the company’s net profit increased by 3.9% to 126.17 million riyals, compared to around 121.4 million riyals in the corresponding quarter of 2022.
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