Robust retail, consumer finance segments spur eXtra’s Q1 2025 profit growth: CEO

Mohamed Galal, CEO and Managing Director at United Electronics Co. (eXtra)

United Electronics Co. (eXtra) posted a 10% year-on-year (YoY) rise in net profit to SAR 103.4 million in Q1 2025, supported by strong performance across its retail and consumer finance segments, CEO and Managing Director Mohamed Galal told Argaam.

Galal said gross profit grew 17.9% YoY to SAR 407.5 million by the end of the three-month period, driven by an improved sales mix and notable growth in consumer finance. He stressed that the company’s continued focus on net profit marked a key performance gauge.

The retail segment’s revenue rose 9% YoY in Q1 2025. Galal said this growth was spurred by eXtra’s growth strategy, citing increased sales from its Clix platform besides the expansion of its paid loyalty program Jood, which helped boost the average basket size.

He noted that the strong retail performance came despite the timing shift of Eid Al-Fitr in Q1 2025 versus last year, demonstrating the segment’s resilience and aptitude to manage seasonal challenges.

During the first quarter of 2025, eXtra opened a new store in Riyadh, marking its 51st in the Kingdom and 56th in the Gulf.

Galal said the expansion supports Riyadh’s urban growth and brings the company closer to its customer base.

In the consumer finance segment, revenue jumped 24.8% YoY in Q1 2025 as the loan portfolio grew 29% YoY by the end of the quarter. Galal attributed this to the successful customer base expansion and the rollout of innovative, consumer-focused financing solutions.

“We are optimistic about future developments across both segments,” he said. “We will continue to invest in innovation and deliver evolving solutions that meet customer needs and support eXtra’s growth.”

In  Q1 2025, eXtra’s net earnings before minority interest rose 10% to SAR 103.4 million, from SAR 93.9 million in Q1 2024, according to Argaam’s data.