Uncertainty affects demand; shipping costs manageable: eXtra CEO

Ali Mansour, Chief Executive Officer at United Electronics Co. (eXtra)

Ali Mansour, Chief Executive Officer at United Electronics Co. (eXtra), said that the geopolitical developments in the region had a noticeable impact on the company's performance during the second quarter of 2026.

In an interview with Argaam, he noted that the most significant effect was a decline in consumer confidence and a change in purchasing behavior, as many customers deferred their purchasing decisions amid prevailing uncertainty, which weighed on consumer spending.

Mansour also stressed that the company was well positioned from a supply chain perspective thanks to its early preparations. As it increased inventory levels during the first quarter in anticipation of the ‘Mega Sale’ campaign, helping ensure product availability and meet demand without significant challenges, despite higher shipping costs, whose impact on the business remained limited.

eXtra’s logistics center is currently operating at full capacity and has become an integral part of its operating model, expecting it to enhance operational efficiency, accelerate the handling and distribution of goods, and improve inventory management, he added.

Regarding the financial results, the CEO said the company views its performance positively despite the challenges, as the retail segment demonstrated resilience by delivering growth in revenue, supported by continued revenue growth and improved operating performance.

Meanwhile, the pressure on profitability came primarily from the consumer finance segment, reflecting current market dynamics, in addition to the company's continued investments in infrastructure and operational and technological capabilities in preparation for the next phase of growth. These expenditures represent strategic investments aimed at strengthening competitiveness and delivering sustainable growth over the medium and long term, said the top executive.

He added that the retail segment remains the group's main earnings driver, contributing approximately 59% of second-quarter net profit despite the challenging environment.

Consumer finance segment is witnessing an investment phase, with the company focusing on building capabilities and strengthening infrastructure to support stronger future growth and profitability.

Looking ahead, Mansour expressed optimism about the company's third-quarter performance, citing supportive factors including the launch of new products and the Saudi National Day season, which represents an opportunity to stimulate demand. He affirmed that the company is well prepared in terms of inventory and operational readiness to continue delivering strong performance in the coming period.

According to Argaam’s data, eXtra reported a net profit of SAR 197.2 million for H1 2026, up 2% year-on-year (YoY) from SAR 192.7 million. Q2 net profit amounted to SAR 102.6 million, down 4% YoY.