United Electronics Company (eXtra) interim full year net profit rises 20 per cent for the period ending December 31, 2012

01/23/2013

• Expected growth approximately 20 per cent in 2013 in both sales and profits

Khobar, Saudi Arabia; January 23, 2013: United Electronics Company (eXtra), Saudi Arabia’s fastest-growing big box consumer electronics and home appliance retailer, today announced its interim financial results for the twelve months ending December 31, 2012, demonstrating the success of the company’s strategy of expanding the range of products and services it offers to customers.

Further underscoring the company’s success in the past year, eXtra reported that total sales for 2012 reached SAR 3,015 million, registering a year-on-year increase of 22.5 per cent, due to increased sales in all of the company’s departments and across all of its stores. The significant increase is attributed to the expansion of eXtra’s strong network from 24 to 29 branches in 2012.

eXtra’s net profit for the year reached SAR 158.6 million, an increase of 20.1 per cent compared to 2011. For the twelve months ending December 31, 2012, eXtra reported an operating profit of SAR 163.5 million, an increase of 20.2 per cent as compared to 2011.

Total sales for the fourth quarter of 2012 were SAR 964 million, an increase of 33.2 per cent compared to the corresponding quarter in 2011, driven in part by steady growth in sales across product categories, as well as opening of five new stores in Jizan, Onaiza, Yanbu, Skaka, and Hail.

eXtra’s net profit for the fourth quarter ending December 31, 2012, stood at SAR 58 million, an increase of 41 per cent as compared to the corresponding period in 2011. The operating profit for the fourth quarter of 2012 amounted to SAR 60.2 million, an increase of 43.3 per cent compared to the same period last year.

On January 3, 2013, eXtra expanded its presence with the launch of operations in the Kingdom of Bahrain, its first store outside of Saudi Arabia. This was rapidly followed with the opening of eXtra’s first store in the Sultanate of Oman.

“As the results demonstrate, 2012 proved to be an outstanding year for eXtra as it further consolidated its market leadership position in the electronics retail space in the Kingdom,” said Abdullah Abdulatif Al Fozan, Chairman, United Electronics Company (eXtra). “Our network expansion strategy, coupled with our strong ability to meet the burgeoning customer demands, has enabled eXtra to continue to lead the Kingdom’s consumer electronics sector. As we expand our operations in other GCC States, we are confident that 2013 will prove to be yet another successful year that will mark the next phase of the growth journey for eXtra. For 2013, we anticipate to register growth in sales and profit of approximately 20 per cent.”

The Earnings Per Share (EPS) for the twelve months ending December 31, 2012, amounted to SAR 6.6, compared to SAR 5.5 in the previous year.

eXtra was recently named as one of “The Top 200 Companies in the GCC” by Forbes Middle East, and also ranked as one of the Top 5 Services companies in the Kingdom of Saudi Arabia. In both 2010 and 2011, eXtra was cited by the Saudi Arabian General Investment Authority (SAGIA) as one of the Kingdom’s fastest-growing companies. In addition, eXtra was also recently named as one of the Arabia 500 top companies in recognition of its exceptional growth and sustained commercial success.