The United Electronics Company (Extra) has decided to establish a wholly owned subsidiary in Egypt.
According to Arabiya Net, this step is the company's first expansion plan outside the Arabian Gulf region.
Extra stated that these expansions are supported by the company's experience in leading the electronics and home appliances sector in the region for more than 18 years, and by injecting initial direct investments worth one billion Egyptian pounds. This step comes to enhance the company's position in the regional market and to complement the company's policy to diversify sources of income and maximize profits by providing the best service to its customers and adding real value to its shareholders.
The company will immediately begin obtaining the necessary approvals and permits from the relevant authorities to establish the company and begin its activities.
Extra said that it will finance the expansion plan through self-financing and borrowing, and an announcement will be made later to clarify any material developments as well as the financial impact of that.
In the latest announced profits, eXtra's net profit increased by 66.7% in the third quarter of 2021, to reach 89.1 million riyals after zakat and tax, compared to 53.44 million riyals. In the same quarter of 2020.
On a quarterly basis, Extra's net profit decreased by 11.34%, compared to a net profit of about 100.5 million riyals in the second quarter of 2021.
The company attributed the increase in net profits for the third quarter of 2021, on an annual basis, to an increase in revenues by 12.1% due to the increase in retail sector sales in addition to the increase in services revenues. Extra and consumer finance services revenues, which led to a growth in gross profit by 25.8% to reach 283.8 million riyals, compared to 225.6 million riyals for the same quarter of last year.
