Takween Advanced Industries Narrows Q1 Losses to SAR 3.9 Million

Takween Advanced Industries Co. significantly reduced its losses in the first quarter of 2024, recording a loss of SAR 3.9 million, down 84.4% from SAR 25.7 million in the same quarter last year. This improvement was highlighted in today’s release of the estimated financial results for the period ending March 31, 2024.

The company achieved an operating profit of SAR 10.8 million during this quarter, a turnaround from an operating loss of SAR 8 million in the corresponding quarter of the previous year.

The loss per share improved to SAR 0.07, down from SAR 0.47 in the same period last year.

The decrease in revenue for the quarter was attributed to a reduction in sales volume following the company’s exit from some low-profit activities. Despite this, the significant reduction in net loss was driven by lower revenue costs, reduced administrative, general, selling, and marketing expenses, and decreased losses from sister companies. Additionally, an increase in other revenues contributed positively despite higher financing costs.

Compared to the previous quarter, the increase in revenues was due to a spike in sales volume driven by the company’s seasonal sales cycle. The decrease in net loss from the previous quarter was also supported by higher revenues, reduced revenue costs, decreased overheads, and reduced losses from sister companies, coupled with an increase in other revenues.