United Electronics Company (Extra) Reports Steady Revenue Growth Despite Profit Dip

08/07/2026 06:45 AST

United Electronics Company (Extra) has released its estimated financial results for the six-month period ending June 30, 2026, showing resilient revenue growth across its retail and consumer finance segments, even as net profit edged lower in the second quarter.

The company reported revenues of SAR 2.24 billion in Q2 2026, marking a 5.5 percent increase year-on-year compared to SAR 2.12 billion in the same quarter last year. This growth was driven by stronger performance in both retail and consumer finance, despite geopolitical challenges in the region that weighed on consumer sentiment.

Within the retail segment, revenues rose 5.4 percent, supported by higher average basket sizes and robust activity in the B2B channel. The consumer finance segment also contributed, posting 6.5 percent revenue growth, underpinned by a 13.6 percent expansion in the financing portfolio compared to the prior year.

Despite these gains, net profit for the quarter slipped to SAR 102.6 million, down 3.7 percent from SAR 106.5 million in Q2 2025. The decline was largely attributed to weaker profitability in consumer finance, which saw a 20.3 percent drop in net profit due to slower revenue growth and ongoing investments in operational capabilities. By contrast, the retail segment recorded a 7.3 percent increase in net profit, highlighting its resilience.

Sequentially, Extra's performance improved compared to the first quarter of 2026. Net profit rose 8.2 percent from SAR 94.8 million in Q1, supported by the company's Mega Sale campaign, which boosted revenues and strengthened quarterly results.

For the first half of 2026, revenues reached SAR 4.07 billion, up 5.3 percent from SAR 3.87 billion in the same period last year. Gross profit climbed 7.8 percent to SAR 923.2 million, while net profit increased modestly by 2.4 percent to SAR 197.2 million. Shareholders' equity stood at SAR 1.66 billion, reflecting a 2.1 percent rise. Earnings per share improved to SAR 2.58, compared to SAR 2.52 a year earlier.

Management emphasized that the company's growth was achieved despite regional geopolitical developments that particularly affected consumer spending in the second quarter. The results, prepared internally and not yet audited, underscore Extra's ability to balance expansion in retail and finance while navigating market headwinds.

Borsatalkhaleej