Naqi Water profit down 22% to SAR 24.2 mln in H1 2023; Q2 at SAR 13.2 mln

Naqi Water Co. reported a net profit of SAR 24.4 million in H1 2023, a fall of 22% from SAR 31.2 million a year earlier.  

The company was hurt by lower sales on expansion plans and seasonal changes in demand due to continued rainfall and relative temperature variations. This came despite the company's ability to reduce the cost of goods sold (COGS) margin by 2% in the current period compared to H1 2022.

Naqi Water recorded higher selling and distribution expenses, as well as general and administrative expenses on opening new branches and higher fuel costs amid rising diesel prices.

By contrast, other income surged 104% year-on-year (YoY) to SAR 4.5 million in H1 2023.

In Q2 2023, the company’s net earnings fell by 37.9% to SAR 13.22 million from SAR 21.29 million in the prior-year period on a decline in sales.

The company incurred higher expenses due to its expansion plans. It also reported higher fuel costs amid rising diesel prices.

Compared to the previous quarter, the bottom line jumped 18.4% from SAR 11.17 million on a 1% sequential growth in sales to SAR 59.8 million. Selling and distribution expenses decreased by 4% to SAR 7.76 million.

Shareholders’ equity, no minority interest, rose to SAR 254.22 million as of June 30, 2023, from SAR 229.26 million a year earlier.

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