Naqi Water 2023 profit down 11.8% to SAR 43M; Q4 at SAR 2.4M

Naqi Water Co. posted an 11.8% profit drop in 2023 to SAR 43 million from SAR 48.7 million a year earlier.

The net profit was hurt by a 16% year-on-year (YoY) drop in sales, primarily due to increased competition in the bottled drinking water sector. The company also focused on expanding its presence in various regions of the kingdom to enhance its market share in the retail sector in the future.

The net earnings also declined due to the company's investment in cost management and production efficiency. The expansions undertaken by the company led to a 17% increase YoY in selling expenses and a 28% increase YoY in general and administrative expenses.

These increases were primarily due to the opening of new branches and the implementation of the company's previously announced expansion plans, including the establishment of new factories for bottled drinking water and the commencement of initial operations.

The fourth-quarter net profit decreased by 5.8% to SAR 2.4 million from SAR 2.5 million in Q4 2022.

Net earnings tumbled 85.4% from SAR 16.1 million in Q3 2023.

Total shareholders’ equity, no minority interest, stood at SAR 253.13 million as of Dec. 31, 2023, compared to SAR 249.48 million in the prior-year period.

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