Consolidated Water (CWCO) Reports 92% Revenue Growth

By Bobby Samwell • Thursday, March 28 15:18 • Permanent Link

Consolidated Water Co. Ltd. (NASDAQ Global Select Market: CWCO) has reported its full-year financial results for 2023, showcasing significant growth across various metrics. Here are the key highlights:

Total revenue surged by 92% to reach $180.2 million in 2023, up from $94.1 million in the prior year.
Retail revenue increased by 16% to $30.2 million, and bulk revenue saw a 5% uptick to $34.6 million.
Services revenue experienced a substantial surge of 240%, reaching $98.0 million, with recurring services revenue from operations and maintenance contracts increasing by 37% to $19.4 million.
Manufacturing revenue also soared, up by 177% to $17.5 million.

On the operational front: The company recognized $64.0 million in revenue from the construction of a $81 million water treatment plant in Goodyear, Arizona, completed by its subsidiary, PERC Water Corporation. The volume of retail water sold increased by 15%, attributed to the return of tourist activity in Grand Cayman. Construction commenced on a new 2.6 million gallon per day Red Gate desalination plant in Grand Cayman and a $204 million seawater desalination plant in Hawaii. The company acquired the remaining 39% interest in PERC and Ramey Environmental Compliance (REC) to expand its presence in water-stressed regions in Colorado.

Financially: Gross profit doubled to $61.9 million, with a 211 basis point increase in gross margin to 34.4%. Net income from continuing operations attributable to company stockholders was $30.7 million, or $1.93 per diluted share, compared to $8.2 million, or $0.54 per diluted share in 2022.

The company also announced a dividend increase in August 2023, raising its quarterly dividend by 11.8% to $0.095 per share beginning in the fourth quarter of 2023.

Rick McTaggart, the CEO of Consolidated Water, expressed satisfaction with the company's performance, highlighting the revenue growth across all business segments and the significant margin expansion. He also emphasized the company's optimistic growth prospects for the future.

Today the company's shares have moved -4.1% to a price of $28.81. For the full picture, make sure to review Consolidated Water's 8-K report.

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