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United Electronics Company (Extra) reported a 73% y-o-y jump in net income to SAR 106.6 mn in 2Q 2024, it said in a disclosure to Tadawul. Revenues rose 9.8% during the period to SAR 1.9 bn due to higher retail sales and a 53% y-o-y uptick in online sales. These gains were partly offset by a ramp up in expenses and a one-off cost due to the cancellation of expansion programs in Egypt.
On a 1H basis: Extra saw its net income rise 37.2% y-o-y to SAR 200.5 mn in 1H 2024, with revenues up 9.9% y-o-y at SAR 3.5 bn.
ALSO- Extra’s board approved the distribution of SAR 160 mn in dividends at SAR 2 per share for 1H 2024, the company said in a separate disclosure to Tadawul. Distribution is set for Thursday, 15 August.
MODERN MILLS-
Modern Mills for Food Products reported SAR 44.5 mn in net income in 2Q 2024, up 8.2% y-o-y on revenues rising 11.6% y-o-y to SAR 223 mn during the quarter, the company said in a disclosure to Tadawul. The rising revenue was attributed to double-digit growth in flour and feed due to higher demand from the Hajj season, geographical expansions, and new product launches. The company’s 1H 2024 net income came in at SAR 109.5 mn, up 4.4% y-oy, while revenues rose 6.4% y-o-y to SAR 480.8 mn.
ALSO- Modern Mills’ board has voted to approve a SAR 81.8 mn in dividends for 1H 2024, at SAR 1 per share, according to a separate disclosure. The distribution is scheduled for Wednesday, 14 August.
AMERICANA RESTAURANTS-
Americana Restaurants International saw its net income drop 40.1% y-o-y to SAR 194.8 mn in 2Q 2024, on the back of reduced sales due to geopolitical events, according to a earnings release (pdf). The company’s restaurants have been facing consumer boycotts since the start of Israel’s war in Gaza. Revenues also decreased 14.2% to SAR 2.1 bn due to geopolitical effects.
On a 1H basis: Americana’s net income also contracted 44.8% y-o-y to USD 80 mn in 1H 2024, with revenues also down 15.2% to USD 1.1 bn, despite the opening of 81 new stores during the period. Aside from geopolitical effects, unfavorable effects due to the devaluation of the EGP in Egypt and higher depreciation charges also contributed to the decline in performance.
Looking ahead: The company is opting a “watchful approach” to expansions, with plans to add between 175 and 185 new stores this year, the company said. It will also focus on investing in “smart pricing, targeting, promotion and marketing” to boost revenues.
AYYAN INVESTMENT COMPANY-
Ayyan Investment’s net losses widened to SAR 48.4 mn in 2Q 2024, compared to a net loss of SAR 41.3 mn in 2Q 2023, despite recording 38.8% growth in revenues to SAR 106.2 mn, it said in a disclosure to Tadawul. Higher revenue and financing costs, as well as greater zakat expenses, contributed to the higher net loss, while the increase in revenues came on the back of greater revenues from Al Salam Medical Services Company from higher patient numbers.
On a 1H basis:Ayyan saw net losses widening to SAR 104.3 mn in 1H 2024 (up from SAR 87.8 mn in 1H 2023) while revenues were up 41.4% y-o-y to SAR 206 mn.
Ayyan’s accumulated losses by 1H 2024 hit 44.9% of the company’s capital, the disclosure reads. This places the company under the purview of Article 4 of the CMA’s guidelines (pdf) for listed companies with accumulated losses, flagging the company’s stock until a remedial plan is announced. Ayyan submitted a rights issue file to the CMA to raise its capital by SAR 200 mn, with shareholders subscribing to some 85% of the newly issued shares so far. The company is also looking at property and equity instrument divestments to stymie its losses. Ayyan has been running steady losses since 2Q 2022.
