04/08/2026 00:50 AST
Saudi electronics retailer United Electronics Co., also known as eXtra, reported higher first-half net profit for 2026 after revenue rose 5.3 percent.
According to Saudi Exchange filings, it increased to SR4.07 billion ($1.09 billion) from SR3.87 billion a year earlier, while net profit rose 2.4 percent year on year to SR197.2 million. Earnings per share increased to SR2.59 from SR2.52.
The company's results come as Saudi retailers continue to benefit from resilient consumer spending despite heightened regional geopolitical tensions, supported by government investment, rising tourism and a growing shift toward digital commerce.
In the bourse filing, eXtra stated: "The company recorded an increase in total revenues during the quarter, driven by growth across both its retail and consumer finance segments compared to the corresponding quarter of the previous year, despite the geopolitical situation in the region and its impact on consumer spending.
It added: "Total revenues reached SR2.24 billion, compared to SR2.12 billion in the prior-year period, representing a 5.5 percent year-on-year increase."
Retail sales up
The company attributed the revenue growth to a 4.6 percent increase in retail sales, supported by a higher average basket size and growth in online sales. Revenue from its consumer finance segment rose 11.9 percent as its consumer finance portfolio expanded 13.6 percent year on year.
Quarterly net profit, however, fell 3.8 percent year on year to SR102.47 million. The company said regional geopolitical developments affected consumer spending during the quarter.
In a separate filing, the company declared an interim cash dividend of SR160 million, or SR2 per share, for the first half of the year.
Market resilience
Aseel Al-Aranki, head of financial market analysis at CG Invest, said the results point to resilience in Saudi Arabia's consumer electronics and home appliances market despite pressure on profitability.
"The headline take is resilience rather than boom," she told Arab News. "Revenue growth held at a steady pace in both the quarter and the half, but the profit line is where the real story sits. Second-quarter net profit fell year on year even as revenue increased."
Al-Aranki noted that the results suggest higher average basket sizes are contributing more to growth than transaction volumes, indicating consumers are consolidating purchases into fewer but larger transactions.
She added that the 13.6 percent expansion in eXtra's consumer finance portfolio points to a growing share of big-ticket electronics and home appliance purchases being financed through installment plans rather than cash.
She also noted that online sales and business-to-business activity remained key growth drivers, while the company's disclosures suggest a cautiously constructive outlook for the second half.
The eXtra retail chain is one of the Gulf's largest consumer electronics and home appliance retailers, with 57 stores across Saudi Arabia, Bahrain and Oman, alongside e-commerce and consumer finance operations.
Enrico Klett, customer success leader for the Arabian Peninsula, tech and durables at NielsenIQ, said eXtra's results are consistent with broader trends in Saudi Arabia's technical consumer goods market.
"Saudi Arabia's TCG market remains resilient despite a challenging second quarter impacted by regional uncertainty," he told Arab News. "After a strong start to 2026, growth softened in March and April as consumers delayed major purchases, particularly in large household appliances. However, recovery signs emerged toward the end of the first half-year, while consumer electronics continued to deliver strong double-digit growth."
Klett noted that innovation continues to drive demand, particularly for smart home products and AI-enabled devices, while promotional activity has helped support sales during periods of uncertainty. He added that consumers are becoming more selective rather than reducing spending, with many prioritizing products that offer greater convenience and productivity.
The NielsenIQ official said the second-half outlook remains cautiously optimistic as consumer confidence improves and postponed purchases return to the market. Retailers that combine strong promotions with clear communication of product benefits are likely to be best positioned to capture demand, he added.
Arab News
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