Takween records SR22 mln losses during Q3‎

Takween Advanced Industries recorded a net loss after zakat and tax of 22 million riyals during the third quarter, compared to a profit of 40 million riyals in the same quarter of last year. This came after today’s announcement of the preliminary financial results for the period ending on September 30, 2022. (nine months).

The operational loss amounted to 10.6 million riyals in the third quarter, compared to a loss of 8.6 million riyals in the same quarter of the previous year, an increase of 23%.

The net loss after zakat and tax in the 9-month period amounted to 46 million riyals, compared to a profit of 50 million riyals in the same period last year.

The loss per share in the current period amounted to 0.48 riyals, compared to a profit of 0.53 riyals in the same period last year.

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, increase of cost of revenue percentage due to increase of raw material cost , the increase in financial charges due the increase in interest rates, the increase in loss from associate. Despite, the increase in sales revenue, the decrease in general and administrative expenses, the decrease in selling and distribution expenses. the same quarter of previous year included the capital gain from disposal of the majority 70% share capital of SAAF Co amount SAR (53,1 million).

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

The reason for the increase in the net loss in the current period compared to the net profit in same period of previous year is due to the increase of cost of revenue percentage due to increase of raw material cost, the increase in financial charges due the increase in interest rates, the increase in loss from associate. Despite, the increase in sales revenue, the decrease in general and administrative expenses, the decrease in selling and distribution expenses, the increase in other income. The same period of previous year included the capital gain from disposal of the majority 70% share capital of SAAF Co amount SAR (53,1 million).

Additional Information:

1-The profit per share for the period ended on 30-09-2022 was calculated by dividing the net loss of SAR (45,85 million) on the weighted average number of shares 95 million therefor loss per share is SAR (0.48) , and for the same period of previous year was calculated by dividing the net profit of SAR (50,36 million) on the weighted average number of shares 95 million therefor profit per share is SAR (0,53)

2-The Losses reach 35% coincides with the announcement of interim financial results, the accumulated loses as of 30/09/2022 has reached SAR (346,53 million), equal to 36,48% 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 35% or more of its capital.