Extra sales reach US$1 billion in 2016
by Stuart Wilson, Tuesday 14 March 2017
Saudi retail giant Extra’s sales for full year 2016 were flat at US$1 billion. The company’s operating income fell 57% year-on-year to US$6.29m, with after-tax profits dropping to just US$560,000 compared to US$13.1m in 2015. Extra’s financial report showed that selling and marketing expenses were US$9.1m higher in 2016 compared to 2015, hitting US$120.9m.
Digging down into the retailer’s financial report, Extra made a net profit of US$6.75m from its operation in Saudi Arabia, which contributed sales of US$939.3m. In contrast, Extra’s operations outside Saudi Arabia made a net loss of US$6.19m on sales of US$62m. At the end of 2016, Extra had a total of 42 branches, with 39 of these inside Saudi Arabia.
The board of United Electronics – the parent company of Extra - proposed raising the company’s capital this February by 16.66% to US$112m from US$96m by issuing one bonus share for every six shares held. The retailer said it would use US$16m from its retained earnings and general reserves to fund the capital hike.
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