United Electronics Company (eXtra) announces the Interim financial results for the period ending on 30-6-2020 (Six Months)
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 1,550.86 | 1,161.5 | 33.522 | 1,232.25 | 25.855 |
| Gross Profit (Loss) | 276.12 | 226.46 | 21.928 | 220.77 | 25.071 |
| Operational Profit (Loss) | 112.97 | 73.08 | 54.584 | 50.68 | 122.908 |
| Net Profit (Loss) after Zakat and Tax | 90.38 | 72.46 | 24.73 | 34.68 | 160.611 |
| Total Comprehensive Income | 90.31 | 72.45 | 24.651 | 34.68 | 160.409 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 2,783.11 | 2,219.01 | 25.421 |
| Gross Profit (Loss) | 496.89 | 414.44 | 19.894 |
| Operational Profit (Loss) | 163.64 | 120.49 | 35.812 |
| Net Profit (Loss) after Zakat and Tax | 125.06 | 106.29 | 17.659 |
| Total Comprehensive Income | 124.99 | 106.37 | 17.504 |
| Total Share Holders Equity (after Deducting Minority Equity) | 731.31 | 608.61 | 20.16 |
| Profit (Loss) per Share | 2.08 | 1.77 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| Increase (Decrease) in Net Profit for Current Quarter Compared to the Same Quarter of the Previous Year is Attributed to | The company achieved net profit of SR 90.4m vs. 72.5 for same quarter last year. The growth of the company's net profit was due to sales increase across all of company's divisions, especially with the beginning of June as a result of issuance VAT hike decree, which led to significant increase in sales before adoption of the new VAT. Sales of Q2 2020 registered 33.5% growth vs. Q2 2019. This led to an increase in gross profit by 21.9% to book gross profit of SR 276.1m vs. SR 226.5m for Q2 2019. Which resulted a growth of company's net profit by 24.7% vs. same Quarter last year, despite of increase in selling, distribution & general & admin expenses. It's worth noting that, Q2 2019 net profit included SR 17.4m non recurring income against the securitization deal of a portion of the installment sales' receivable. |
| Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to | The Company achieved Net profit of SR 90.4m vs. 34.7 for previous quarter due to increase in company's sales by 25.9% vs. previous quarter. The growth of the company's net profit was due to sales increase, especially with the beginning of June as a result of issuance VAT hike decree, which led to significant increase in sales before adoption of the new VAT. which led to increase in gross profit & net profit. |
| Increase (Decrease) in Net Profit for Current Period Compared to the Similar Period of the Previous Year is Attributed to | The company achieved net profit of SR 125.1m vs. 106.3m for same period last year. The growth of the company's net profit was due to sales increase across all of company's divisions, especially with the beginning of June as a result of issuance VAT hike decree, which led to significant increase in sales before adoption of the new VAT. in addition to increase in extra Services and consumer finance revenues through the period. This led to an increase in gross profit by 19.9% to book gross profit of SR 496.9m vs. SR 414.4m for H1 2019. Which resulted a growth of company's net profit by 17.7% vs. same Period last year, despite of the following: 1) Increase in selling, distribution & general & admin expenses. 2) SR 20.8 non recurring income has been booked in H1 2019. |
| Basis of the External Auditor's Opinion | Unmodified opinion |
| Reclassification of Comparison Items | Some comparative figures have been reclassified to be consistent with the presentation of the current period. |
| Additional Information | by the second half of Q1 2020, Coronavirus (COVID-19) started to outbreak in the kingdom, government of Saudi Arabia applied a lot of precautionary measures to containment the virus outbreak, which included the partial & full-time Curfew across the kingdom starting beginning of April 2020. The curfew negatively impacted the company's operations, which led to have 33 closed stores in the kingdom in addition to 5 stores in Sultanate of Oman & kingdom of Bahrain. it's worth noting that April 2020 stores sales was down by more than 55% vs. Apr 2019. Starting May 2020, the government started gradually lifting the curfew, allowing the economic activities to start again with considering full commitment of applying social distancing measures that would control the virus outbreak. The company applied all that measures across all its stores, warehouses and head office.
Through Q2 2020, Some operating expenses decreased due to some support initiatives offered by government of the kingdom of Saudi Arabia to mitigate the effects of precautionary measures applied to contain COVID-19 outbreak.
Earning per Share for the previous year has been modified after approval of capital increase which has been approved on 5th of May 2020 in the extraordinary General Assembly meeting. |
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