Miahona net profit rises 14% to SAR 56.9M in 2023

Logo of Miahona Co.

Miahona Co., slated to list on the Saudi Exchange (Tadawul), posted a profit rise to SAR 56.9 million (SAR 0.35 per share) by the end of 2023, compared to SAR 50.1 million a year earlier.

The annual profit increase was driven by improved gross profit margins, pertains to the 18% year-on-year (YoY) growth in revenues to SAR 324.5 million in 2023. This was supported by higher revenues from customer contracts, especially contracts for water and wastewater services. The company won a long-term project to rehabilitate and operate the Hadda and Arana plant in Makkah, contributing construction revenues of SAR 34.5 million during the year.

The 2023 financials also included profit worth SAR 4.2 million resulting from term deposits. Additionally, Miahona's share of profits from its associates increased from SAR 5.4 million in 2022 to about SAR 6.5 million in 2023.

The following table shows development in Miahona’s income statement during the past four years:

The company's revenues grew steadily to SAR 324.5 million in 2023 at a compound annual growth rate (CAGR) of 12.5% over the past four years.

Its earnings before interest, taxes, depreciation, and amortization (EBITDA), a key indicator of operational efficiency, also grew from SAR 88.4 million in 2020 to SAR 141.5 million in 2023, a CAGR of 17%.

Further, net income increased to SAR 57 million in 2023, with a CAGR of 48.4%.

Financial Position

Financial statements showed that the company's assets grew to SAR 989.3 million by the end of 2023, compared to SAR 963 million in 2022.

The company's working capital (Current assets – current liabilities), which measures its ability to cover short-term obligations, increased over the past four years from SAR 115.7 million to SAR 175.9 million.  

Shareholders’ equity rose over the past five years from SAR 268.8 million in 2019 to SAR 393.2 million in 2023.

Miahona had recently entered into a 10-year operation and maintenance agreement with a government related entity to operate and maintain the rehabilitation works of water treatment plants, while also providing operation and maintenance services. All relevant outputs from the plants will be purchased and taken by the facility related to the government. By the end of the long-term operation and maintenance agreement, the plants will be transferred back to the government-related facility.