eXtra profit drops 17% to SAR 264.4 mln in 9M 2023; Q3 at SAR 118.3 mln

09/10/2023 Argaam Exclusive

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Share Price

98.60
(2.20) (2.18 %)

United Electronics Co. (EXTRA)

United Electronics Co. (eXtra) reported an estimated net profit of SAR 264.4 million in the first nine months of 2023, down 17% from SAR 318.8 million a year earlier.



Financials (M)

Item 9m 2022 9m 2023 Change‬
Revenues 4,485.10 4,641.03 3.5 %
Gross Income 911.28 993.80 9.1 %
Operating Income 340.74 377.19 10.7 %
Net Income 318.79 264.38 (17.1 %)
Average Shares 80.00 80.00 -
EPS (Riyals) 3.98 3.30 (17.1 %)

The nine-month earnings were negatively impacted by higher interest rates, which led to finance cost rising by SAR 39.6 million year-on-year (YoY). The company recognized non-recurring losses of SAR 38 million as it discontinued its expansion plans in Egypt. Further, selling and marketing, as well as general and administrative expenses increased during the first nine months of 2023.

 

On the other hand, revenue grew 3.5% YoY, backed by higher topline in the consumer finance segment and retail segment’s sales mix enhancement.

 

Gross profit increased by 8.5% YoY to SAR 989.1 million.

 

In addition, United Company for Financial Services (Tas’heel) reported a net profit of SAR 157.2 million, compared to SAR 144.1 million in the first nine months of 2022.



Current Quarter Comparison (M)

Compared With The
Item Q3 2022 Q3 2023 Change‬
Revenues 1,372.71 1,452.18 5.8 %
Gross Income 300.21 334.21 11.3 %
Operating Income 102.88 142.65 38.7 %
Net Income 94.16 118.27 25.6 %
Average Shares 80.00 80.00 -
EPS (Riyals) 1.18 1.48 25.6 %

The third-quarter net profit jumped 26% to SAR 118.3 million, from SAR 94.16 million in Q3 2022, thanks to a 5.8% YoY rise in revenue on growth in the retail segment’s sales and consumer finance business through Tas’heel.

 

The company’s gross profit increased to SAR 334.2 million, from SAR 300.2 million in Q3 2022. Tas’heel’s net profit reached SAR 53.4 million in Q3 2023, compared to SAR 45.2 million a year earlier.

 

The Q3 2023 bottom line surged 91.8% from SAR 61.67 million in the previous quarter, as the home appliance retailer recorded non-recurring losses of SAR 38 million in Q2 2023.

 

Total shareholders’ equity, no minority interest, rose to SAR 1.13 billion as of Sept. 30, 2023, compared to SAR 1.02 billion a year earlier.



Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2014 807.33 11.6 % 144.84 14.4 % 29.25 11.6 % 0.37
Q2 2014 984.29 1.3 % 167.96 4.8 % 53.77 0.9 % 0.67
Q3 2014 809.06 3.9 % 144.06 2.1 % 29.75 1.0 % 0.37
Q4 2014 1,088.69 19.1 % 163.90 (5.6 %) 8.28 (85.8 %) 0.10
Q1 2015 871.71 8.0 % 134.11 (7.4 %) 16.08 (45.0 %) 0.20
Q2 2015 879.50 (10.6 %) 138.51 (17.5 %) 11.83 (78.0 %) 0.15
Q3 2015 719.66 (11.0 %) 128.60 (10.7 %) 12.20 (59.0 %) 0.15
Q4 2015 1,273.91 17.0 % 176.00 7.4 % 9.07 9.7 % 0.11
Q1 2016 742.91 (14.8 %) 97.51 (27.3 %) (45.89) (385.4 %) (0.57)
Q2 2016 881.27 0.2 % 145.33 4.9 % 11.02 (6.8 %) 0.14
Q3 2016 745.45 3.6 % 133.06 3.5 % 6.16 (49.5 %) 0.08
Q4 2016 1,387.04 8.9 % 213.39 21.2 % 26.34 190.2 % 0.33
Q1 2017 804.67 8.3 % 134.40 37.8 % 12.99 128.3 % 0.16
Q2 2017 1,013.91 15.1 % 172.29 18.6 % 43.37 293.4 % 0.54
Q3 2017 777.96 4.4 % 150.59 13.2 % 26.13 324.1 % 0.33
Q4 2017 1,613.25 16.3 % 253.04 18.6 % 57.65 118.9 % 0.72
Q1 2018 864.61 7.4 % 152.75 13.6 % 21.57 66.0 % 0.27
Q2 2018 1,015.36 0.1 % 185.12 7.4 % 45.59 5.1 % 0.57
Q3 2018 894.82 15.0 % 172.16 14.3 % 30.95 18.5 % 0.39
Q4 2018 1,619.28 0.4 % 269.38 6.5 % 63.08 9.4 % 0.79
Q1 2019 1,057.51 22.3 % 187.98 23.1 % 33.83 56.8 % 0.42
Q2 2019 1,161.50 14.4 % 226.46 22.3 % 72.46 58.9 % 0.91
Q3 2019 1,034.56 15.6 % 185.82 7.9 % 27.23 (12.0 %) 0.34
Q4 2019 1,881.04 16.2 % 300.93 11.7 % 72.09 14.3 % 0.90
Q1 2020 1,232.25 16.5 % 220.77 17.4 % 34.68 2.5 % 0.43
Q2 2020 1,550.86 33.5 % 276.12 21.9 % 90.38 24.7 % 1.13
Q3 2020 1,224.52 18.4 % 225.59 21.4 % 53.44 96.2 % 0.67
Q4 2020 1,954.69 3.9 % 316.83 5.3 % 101.64 41.0 % 1.27
Q1 2021 1,364.33 10.7 % 260.21 17.9 % 81.20 134.1 % 1.01
Q2 2021 1,328.79 (14.3 %) 289.79 5.0 % 100.50 11.2 % 1.26
Q3 2021 1,373.10 12.1 % 280.17 24.2 % 89.00 66.6 % 1.11
Q4 2021 1,767.41 (9.6 %) 353.48 11.6 % 126.14 24.1 % 1.58
Q1 2022 1,411.98 3.5 % 290.17 11.5 % 97.51 20.1 % 1.22
Q2 2022 1,700.41 28.0 % 320.90 10.7 % 127.12 26.5 % 1.59
Q3 2022 1,372.71 0.0 % 300.21 7.2 % 94.16 5.8 % 1.18
Q4 2022 1,545.96 (12.5 %) 353.78 0.1 % 121.39 (3.8 %) 1.52
Q1 2023 1,438.14 1.9 % 313.88 8.2 % 84.44 (13.4 %) 1.06
Q2 2023 1,749.73 2.9 % 344.72 7.4 % 61.67 (51.5 %) 0.77
Q3 2023 1,452.18 5.8 % 334.21 11.3 % 118.27 25.6 % 1.48

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2014 17.85 % 6.24 % 4.91 %
Q2 2014 18.01 % 6.30 % 4.90 %
Q3 2014 17.93 % 6.28 % 4.87 %
Q4 2014 16.83 % 4.60 % 3.28 %
Q1 2015 16.25 % 4.19 % 2.87 %
Q2 2015 15.91 % 3.15 % 1.81 %
Q3 2015 15.88 % 2.72 % 1.36 %
Q4 2015 15.41 % 2.71 % 1.31 %
Q1 2016 14.95 % 1.10 % (0.35 %)
Q2 2016 15.13 % 1.00 % (0.38 %)
Q3 2016 15.15 % 1.01 % (0.40 %)
Q4 2016 15.69 % 1.78 % 0.49 %
Q1 2017 16.40 % 3.25 % 2.03 %
Q2 2017 16.53 % 4.02 % 2.78 %
Q3 2017 16.84 % 4.36 % 3.12 %
Q4 2017 16.87 % 4.76 % 3.56 %
Q1 2018 17.07 % 4.96 % 3.71 %
Q2 2018 17.36 % 5.09 % 3.76 %
Q3 2018 17.39 % 5.08 % 3.77 %
Q4 2018 17.74 % 5.02 % 3.67 %
Q1 2019 17.76 % 5.57 % 3.78 %
Q2 2019 18.08 % 6.11 % 3.86 %
Q3 2019 17.85 % 6.32 % 3.58 %
Q4 2019 17.55 % 6.79 % 3.58 %
Q1 2020 17.59 % 6.76 % 3.47 %
Q2 2020 17.26 % 7.19 % 3.86 %
Q3 2020 17.38 % 7.55 % 4.26 %
Q4 2020 17.43 % 7.76 % 4.70 %
Q1 2021 17.70 % 8.25 % 5.36 %
Q2 2021 18.60 % 8.34 % 5.73 %
Q3 2021 19.05 % 8.63 % 6.18 %
Q4 2021 20.29 % 9.49 % 6.80 %
Q1 2022 20.64 % 9.76 % 7.02 %
Q2 2022 19.91 % 9.50 % 6.76 %
Q3 2022 20.23 % 9.58 % 6.79 %
Q4 2022 20.98 % 9.83 % 6.96 %
Q1 2023 21.28 % 9.74 % 6.72 %
Q2 2023 21.49 % 9.66 % 6.50 %
Q3 2023 21.77 % 10.17 % 6.85 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2014 80.00 2.13 2.13 6.47
Q2 2014 80.00 2.14 2.14 6.74
Q3 2014 80.00 2.14 2.14 6.74
Q4 2014 80.00 1.51 1.51 6.47
Q1 2015 80.00 1.35 1.35 6.67
Q2 2015 80.00 0.82 0.82 6.61
Q3 2015 80.00 0.60 0.60 6.53
Q4 2015 80.00 0.61 0.61 6.65
Q1 2016 80.00 (0.16) (0.16) 6.09
Q2 2016 80.00 (0.17) (0.17) 6.22
Q3 2016 80.00 (0.25) (0.18) 6.31
Q4 2016 80.00 (0.03) 0.23 6.60
Q1 2017 80.00 0.71 0.97 5.87
Q2 2017 80.00 1.11 1.37 6.41
Q3 2017 80.00 1.36 1.56 6.35
Q4 2017 80.00 1.75 1.87 7.08
Q1 2018 80.00 1.86 1.98 6.68
Q2 2018 80.00 1.89 2.01 7.25
Q3 2018 80.00 1.95 2.07 7.25
Q4 2018 80.00 2.01 2.01 8.07
Q1 2019 80.00 2.17 2.17 7.46
Q2 2019 80.00 2.50 2.29 7.61
Q3 2019 80.00 2.46 2.18 7.34
Q4 2019 80.00 2.57 2.30 8.25
Q1 2020 80.00 2.58 2.31 7.91
Q2 2020 80.00 2.80 2.75 9.14
Q3 2020 80.00 3.13 3.13 9.11
Q4 2020 80.00 3.50 3.50 10.32
Q1 2021 80.00 4.08 4.08 9.77
Q2 2021 80.00 4.21 4.21 11.10
Q3 2021 80.00 4.65 4.65 10.80
Q4 2021 80.00 4.96 4.96 12.41
Q1 2022 80.00 5.16 5.16 11.81
Q2 2022 80.00 5.50 5.28 13.42
Q3 2022 80.00 5.56 5.31 12.78
Q4 2022 80.00 5.50 5.25 14.24
Q1 2023 80.00 5.34 5.09 15.31
Q2 2023 80.00 4.52 4.96 14.18
Q3 2023 80.00 4.82 5.30 14.22

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2014 20.14 20.14 6.63
Q2 2014 21.37 21.37 6.77
Q3 2014 20.58 20.58 6.53
Q4 2014 19.84 19.84 4.64
Q1 2015 26.44 26.44 5.35
Q2 2015 45.96 45.96 5.73
Q3 2015 34.06 34.06 3.15
Q4 2015 29.17 29.17 2.70
Q1 2016 NEG NEG 1.91
Q2 2016 NEG NEG 1.89
Q3 2016 NEG NEG 1.28
Q4 2016 NEG More than 50 1.79
Q1 2017 21.61 15.79 2.60
Q2 2017 14.89 12.06 2.58
Q3 2017 17.41 15.22 3.73
Q4 2017 14.12 13.21 3.49
Q1 2018 19.10 17.94 5.31
Q2 2018 17.35 16.32 4.51
Q3 2018 17.30 16.30 4.65
Q4 2018 19.85 19.85 4.96
Q1 2019 17.32 17.32 5.03
Q2 2019 16.85 18.46 5.55
Q3 2019 18.56 20.90 6.21
Q4 2019 18.21 20.39 5.67
Q1 2020 13.88 15.53 4.53
Q2 2020 14.71 15.01 4.51
Q3 2020 16.69 16.69 5.74
Q4 2020 18.53 18.53 6.28
Q1 2021 19.29 19.29 8.06
Q2 2021 23.70 23.70 8.98
Q3 2021 22.98 22.98 9.91
Q4 2021 20.47 20.47 8.18
Q1 2022 19.32 19.32 8.45
Q2 2022 15.44 16.08 6.33
Q3 2022 14.83 15.54 6.46
Q4 2022 12.56 13.16 4.85
Q1 2023 14.55 15.27 5.08
Q2 2023 16.24 14.80 5.18
Q3 2023 15.66 14.25 5.31

Business Segments (Million)

Compared With The
Period Retail / Wholesale Consumer Finance Other activities Consolidation adjustments & eliminations
Q1 2020 1,214.34 18.75 2.48 (3.32)
Q2 2020 1,525.80 25.91 2.19 (3.04)
Q3 2020 1,189.03 36.33 3.38 (4.59)
Q4 2020 1,898.20 49.64 10.72 (3.51)
Q1 2021 1,304.32 61.38 3.79 (5.16)
Q2 2021 1,257.45 71.70 3.80 (4.16)
Q3 2021 1,293.20 80.45 3.87 (4.41)
Q4 2021 1,675.79 87.38 9.53 (5.28)
Q1 2022 1,318.29 94.61 4.64 (5.56)
Q2 2022 1,604.59 96.75 4.99 (5.92)
Q3 2022 1,265.96 107.01 4.99 (5.24)
Q4 2022 1,429.17 118.59 5.41 (7.21)
Q1 2023 1,316.48 122.63 5.73 (6.70)
Q2 2023 1,623.39 127.34 5.84 (6.83)
Q3 2023 1,320.90 133.25 4.54 (5.53)

Analysts Estimates (Million)

Item Q3 2023 (e) Q3 2023 (a) Change‬
Average 92.00 118.27 28.55 %

Estimates vs Actual (Million)

Item Q3 2023 (e) Q3 2023 (a) Change
Al Rajhi Capital 98.00 118.27 20.7 %
AlJazira Capital 90.20 118.27 31.1 %
SNB Capital 87.80 118.27 34.7 %

Current
Market Cap (M Riyal) 7,888.00
Enterprise Value (EV) (M) 9,053.75
Shares Outstanding ((M)) 80.00
EPS ( Riyal) (TTM) 5.00
Book Value (BV) ( Riyal) 15.37
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 18.01
P/E (TTM) 19.73
Price/book 6.42
Return on Average Assets (%) (TTM) 9.2
Return on Average Equity (%) (TTM) 32.6

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