Naqi Water 9M 2025 profit down 58% to SAR 11.90M; Q3 at SAR 3.5M

Naqi Water Co.’s net profit fell 59% to SAR 11.9 million for the first nine months of 2025, compared to SAR 28.8 million in the same period a year earlier.

The decline in profit was mainly due to lower sales, driven by a decrease in the wholesale segment despite growth in retail sales, along with higher operating expenses related to the opening of new branches under the retail expansion plan and increased provisions for expected credit losses.

Additionally, the decline was impacted by the absence of non-recurring gains from a land sale recorded in the same period last year, as well as higher expenses from the poultry segment, which remains under the company’s ongoing expansion plan.

Despite these factors, the company maintained stable gross profit margins due to effective cost control.

In Q3 2025, the company’s earnings declined mainly on lower sales caused by a shift in the sales mix between wholesale and retail, alongside the opening of new retail outlets.

While the expansion supported higher retail sales, a drop in wholesale revenues directly impacted total sales.

Sequentially, the company’s profit declined 26.6%, reflecting lower wholesale sales, although retail revenues rose 4% amid continued focus on the retail segment, while operating profit also decreased during the quarter.

Shareholders’ equity, no minority interest, amounted to SAR 285.54 million by the end of 9M 2025, compared to SAR 272.14 million in the prior-year period.

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