Naqi Water’s Q1 2023 net profit up 12% to SAR 11.2 mln

Naqi Water Co. posted a net profit of SAR 11.2 million in Q1 2023, a 12% hike from SAR 10 million a year earlier.

The positive performance was driven by an 8% YoY decline in the cost of goods sold, which came as a reflection of the decrease in raw material prices and effective inventory management.

This also resulted in a 12% year-on-year (YoY) uptick in gross profit.

Operating profit increased by 13% YoY, despite the rise in selling and distribution expenses of 30% as well as a 42% YoY surge in general and administrative expenses (G&A). Both selling and G&A expenses soared on the back of the company’s expansion activities in the Kingdom’s central and western regions, paired with higher costs related to the roll-out of new products, namely vitamin D-enhanced purified water.

Meanwhile, other income advanced YoY by 253%, including higher transportation revenue on the effective management of the company’s transportation truck to generate other revenue. Additionally, short-term investment and scrap revenues contributed to the growth of other income items. Net profit after Zakat saw a 12% YoY jump.

Sequentially, net profit more than quadrupled from SAR 2.51 million in Q4 2022.

Shareholders’ equity, no minority interest, stood at SAR 240.83 million as of March 31, 2023, compared to SAR 217.88 million a year earlier.

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