Naqi Water Co. announces its Interim Financial results for the Period Ending on 2024-09-30 ( Nine Months )

In the current quarter, the company reported a 9.8% decrease in overall sales, primarily due to reduced wholesale sector sales, that’s because, the company redirected its strategy to be focus on retail expansion, which included the acquisition of branches in the Hail and Eastern Regions, along with the consumer sales agency in Riyadh. As a result of these efforts, retail sales increased by 8.8%, complemented by a 5.6% increase in logistics and transportation services.

Net profit decrease reason is due to sales decreased and expenses increased caused by financial impact of entering the poultry sector, and costs related to execute its branch expansion strategy.

The company achieved 9% increase in revenue in the current quarter compared to the previous quarter of this year. This growth reason due to the increase in retail sales table egg sector sales, and logistic transportation revenue.

Despite an increase in operating profit in the current quarter compared to the previous quarter, net profit decreased by 8.5%. This decline was primarily due to several non-operational factors, including reduced the capital gains from asset sales, as well as 

previously disclosed sale of the Riyadh factory land and the decrease in Time deposit revenue.

The company’s revenue for the current period decreased by 8.3% primarily due to a decline in wholesale sales. At the same time the company focused on retail expansion strategy which caused an 33% growth in retails sector.

Net profit decreased in the current period compared to the same period last year, impacted by several key factors. The most significant was the company’s strategic entry into the table egg production sector as part of company aims to revenue diversification, Additionally increased selling and distribution expenses related to branch expansion, a decrease in other revenue streams, and formed provision for doubtful receivables further contributed to the decrease in net profit. Click here To view the announcement on Saudi Exchange (Tadawul)