United Electronics Company (eXtra), one of the leading electronics and home appliance retailers in Saudi Arabia, announced significant growth in its 2025 net profit after making necessary accounting adjustments. According to financial statements published on the Saudi Stock Exchange (Tadawul), the company's adjusted net profit increased by 6.3% to SAR 497 million, compared to SAR 467.7 million in 2024.
Financial performance details and reasons for growth
The company attributed this positive growth primarily to a 14.9% increase in gross profit during the year, driven by higher revenues. Despite higher selling, distribution, and general and administrative expenses, strong sales growth contributed to the improved bottom line. The company clarified that a direct comparison of the unadjusted figures could be misleading, as they showed an apparent decrease of 5.85% (from SAR 527.9 million in 2024 to SAR 497 million in 2025). This discrepancy stems from a significant structural change: the initial public offering (IPO) of United International Holding Company, a subsidiary of Extra, in December 2024. To provide a fair comparison reflecting true operating performance, the prior year's figures were adjusted to exclude the impact of this change, thus revealing the actual profit growth.
The general context and journey of "Extra"
Founded in 2003, Extra has successfully established itself over two decades as a leading consumer destination in Saudi Arabia. The company operates a wide network of stores across the Kingdom, in addition to a sophisticated e-commerce platform that has become an integral part of its growth strategy. This strong financial performance comes amidst major economic transformations underway in the Kingdom as part of Saudi Vision 2030, which aims to diversify the economy, strengthen the private sector, and increase the purchasing power of citizens and residents, thus creating a favorable environment for the retail sector.
The importance of the results and their future impact
These financial results reflect Extra’s ability to adapt to market and structural changes and its capacity to achieve sustainable growth. This performance is a positive indicator for investors regarding the strength of the company’s business model and its operational resilience. Domestically, Extra’s growth underscores the dynamism of the Saudi retail sector and the strength of consumer demand, particularly in the rapidly evolving electronics sector. Furthermore, the company’s success in diversifying its services, such as launching consumer finance services through its subsidiary Tasheel Finance, opens new revenue streams and enhances customer loyalty. The company is expected to continue its expansion strategy, both by opening new branches and strengthening its digital channels, to capitalize on promising opportunities in the Saudi market and neighboring markets.
