United Electronics Co.’s (eXtra) chief executive officer, Mohamed Galal, said that the second quarter 2020 results are expected to be excellent due to the strong performance of the company, adding that they will be disclosed soon.
He also noted that the month of June witnessed a purchasing spree ahead of the implementation of the new 15% value-added tax (VAT) as of July 1, which will have a positive impact on Q2 2020 results, CNBC Arabia reported.
He further explained that when Saudi Arabia started to apply the 5% VAT in January 2018, the company’s sales rose 16%, expecting a significant contraction in Q3 2020 after the implementation of the new VAT scheme whereas Q4 results will be close to normal performance.
eXtra’s e-sales in 2020 touched 25% of total sales compared to 12% last year, Galal concluded.
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