Is There Money in the Water Industry?

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Water Industry Statistics

  • Profits and Revenues
  • Companies are cashing in on huge water demand.
  • In 2017, Nestle’s water sales exceeded $7 billion.
  • The water stock pays a 2% dividend, rewarding investors.
  • In 2021, Thames Water had the highest UK utility revenue – 2.1 billion pounds.

Profitability Analysis

  • Margins and Revenue
  • In 2020, the average utility net profit margin was 9.5%.
  • The 2019 utility gross margin was 60% with 22.7% earnings margin.
  • Bottled water margins range 50-200%.
  • As some corporations profit, many lack clean water access.
  • Water source influences profits.
  • Paying $3-$5 per 1,000 liters yields more profit than paying the same per 100 liters.

Water Store Economics

  • Impact of Location and Costs
  • Buying bottled water is becoming an alternative to tap.
  • Location, competition, and costs impact water store success.

Additional Analysis

  • Global Water Business
  • Companies are now selling water in all sorts of packaging.
  • There is huge demand for water, and businesses are cashing in.
  • In 2017, Nestle’s water division had over $7 billion in sales.
  • Treating water as a tradable commodity puts human rights in the hands of financial institutions.

Conclusion

  • How much money does the water industry make?
  • How profitable are water companies?
  • Location, competition, and costs impact success.

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