Naqi Water Co. announces its Interim Financial results for the Period Ending on 2024-06-30 (Six Months)

The reason for the decrease in the company’s sales is attributed to changes in sales in both the retail and wholesale sectors, resulting from the company’s strategy aimed at expanding the opening of retail branches. This expansion led to an increase in retail sales; however, the decline in wholesale sales contributed to the overall decrease in sales. Furthermore, changes in demand for different products due to shifts in consumer behavior resulted in an increase in the share of low-priced products, which contributed to the decline in sales.

The reason for the decrease in net profit during the current quarter can be attributed to the decline in sales in the water sector, along with an increase in expenses related to the opening and expansion of branches. Additionally, rising transportation costs due to fuel price hikes have played a role. This decrease was also supported by expenses in the poultry sector, which is still under the company’s future expansion plan.

Sales in the current quarter decreased by 2.9% compared to the previous quarter. This decline resulted from a decrease in wholesale sales due to the company’s focus on enhancing branch openings and expanding retail sales. Additionally, the overlap of holidays with the current quarter had a negative impact on sales compared to the previous quarter.

The company achieved growth equivalent to 39% in net profit after zakat. This increase was supported by capital gains resulting from the exclusion of assets related to the company’s expansion plans. This growth occurred despite the decrease in sales. The earnings per share for the current quarter reached SAR 0.55.

Sales decreased by 7.5% due to changes in sales in both the retail and wholesale sectors, resulting from the company’s strategy aimed at expanding the opening of retail branches. This decline was also supported by a shift in the sales mix of water products due to consumer preferences towards purchasing lower-priced varieties.

The reason for the decrease in net profit during the current period compared to the same period is attributed to a decline in sales in the water sector, along with an increase in expenses related to opening and expanding branches. Additionally, rising transportation costs due to fuel price hikes have had an impact. This decrease was further supported by expenses in the poultry sector, which is still part of the company’s future expansion plan. Moreover, this decline was reinforced by a shift in the sales mix of water products due to consumer preferences towards purchasing lower-margin varieties. Click here To view the announcement on Saudi Exchange (Tadawul