Takween reports SR15 mln losses in 2Q

Takween Advanced Industries Co. announced that its losses after zakat and tax rose to SR 15 million in the second quarter of 2022 compared to SR 9 million during the same period of 2021.

This came after Takween announcement on Thursday of the preliminary financial results for the period ending on 30.06.2022 (six months).

The company’s operational loss declined 54% to SR 4.4 million in the 2^nd quarter of the current year from SR 9.6 million in the same period of the previous year.

Gross Profits of Takween surged 37% to SR 17 million in the second quarter of this year from SR 12 million a year ago, while the loss per share soared to SR 0.25 from SR 0.1.

The reason for the increase in net loss in the current quarter compared to the net profit for the same quarter of previous year is due to the decrease of net income for the period from discontinued operation amount (19 million) , the increase in selling and distribution expenses, the increase in financial charges and the increase in loss from investment in associate, Despite, the increase in sales revenue (28,9%) because of increase sales price and increase the percentage of gross profit to (36,7%), also the decrease of cost of revenue percentage, the decrease in general and administrative expenses and the increase in other income.

The reason for the decrease in net loss in the current quarter compared to the net loss for the previous quarter is due to, the increase of cost of revenue percentage, the increase in selling and distribution expenses, the increase in financial charges and the increase in loss from investment in associate Despite, the increase in sales revenue by 14,6%, the decrease in general and administrative expenses and The operational.

The reason for the increase in net loss in the current period compared to the net profit for the same period of previous year is due to the decrease of net income for the period from discontinued operation amount (41million) the increase in selling and distribution expenses, the increase in financial charges and the increase in loss from investment in associate, Despite, the increase in sales revenue (31,23%) because of increase sales price and increase the percentage of gross profit to (56,87%), also the decrease of cost of revenue percentage, the decrease in general and administrative expenses and the increase in other income.

Additional Information:

1-The profit per share for the period ended on 30-06-2022 was calculated by dividing the net loss of SAR (23,9 million) on the weighted average number of shares 95 million therefor loss per share is SAR (-0,25), and for the same period of previous year was calculated by dividing the net profit of SAR (10,03 million) on the weighted average number of shares 95 million therefor profit per share is SAR (0,10).

2-The accumulated loses as of 30-06-2022 has reached SAR (324,64 million), equal to 34,17% of the company’s capital of SAR 950 million. The accumulated loses as of 31/12/2021 has reached SAR (300,68 million), equal to 31.65% of the company’s capital. Noting that the company is applying the procedures and instructions issued by the capital market authority of the listed companies in the Saudi Stock Exchange, which has accumulated losses of 20% or more of its capital.