Saudi retailer posts 22.5% rise in sales

Saudi-based consumer electronics retailer eXtra has posted sales of more than SR3bn ($800m) in 2012, 22.5 percent higher than the previous year.

The company, also known as United Electronics Company, said the improvement in performance was due to increased sales across all of its stores which grew from 24 to 29 branches in 2012.

The retailer said its net profit for the year reached SR158.6m, an increase of 20.1 percent compared to 2011.

Total sales for the fourth quarter of 2012 were SR964m, an increase of 33.2 percent, driven in part by steady growth in sales across product categories, eXtra said in a statement.

It added that net profit for the fourth quarter stood at SAR58m, an increase of 41 percent compared to the same period in 2011.

On January 3, eXtra expanded its presence with the launch of operations in Bahrain, its first store outside of Saudi Arabia.

This was followed with the opening of eXtra's first store in Oman.

Abdullah Abdulatif Al Fozan, chairman, United Electronics Company, said: "As the results demonstrate, 2012 proved to be an outstanding year for eXtra as it further consolidated its market leadership position in the electronics retail space in the kingdom.

"Our network expansion strategy, coupled with our strong ability to meet the burgeoning customer demands, has enabled eXtra to continue to lead the kingdom's consumer electronics sector.

"As we expand our operations in other GCC states, we are confident that 2013 will prove to be yet another successful year that will mark the next phase of the growth journey for Extra. For 2013, we anticipate to register growth in sales and profit of approximately 20 percent."

Last month, the company said that subject to regulatory approval, the company will increase its capital by six million shares, raising the company's current capital from SR240m ($64m) to SR300m.