Takween Advanced Industries Co. — Earnings Release 2015

Feb 18, 2016

Takween Advanced Industries Co. announces the annual financial results of the period ending on 31-12-2015

1201 · 18/02/2016 08:00:47 · Announcement #41237 · View on Saudi Exchange

Takween Advanced Industries Co. announces the annual financial results of the period ending on 31-12-2015

Element	Current year	Previous year	% Change
Net profit (loss)	-27,122	55,323	-
Earning or loss per share, Riyals	-0.77	1.58	-
Gross profit (loss)	179,614	121,290	48.09
Operational profit (loss)	13,693	56,858	-75.92

*All figures are in (Thousands) Saudi Arabia, Riyals

Element	EXPLAINATION
Reasons of annual financial results	The reasons of net loss compared with net income of last year is due to the increase of COGS which represents 90% of the Sales Revenue comparing to 84% of previous year. The drop of the oil prices and related raw materials impacted negatively on the drop of Takween Sales prices comparing to the average cost of its inventory as of the end of this period. Takween results have been affected by SAAF losses, a wholly owned subsidiary of Takween. SAAF sells its products to the international market such as China, USA and EU. These markets are under difficult economic conditions and high competition. As consequence, SAAF sales prices dropped comparing to the average cost of its inventory as of the end of this period. Following the Accounting Standards, Takween recognized the Fixed Assets after the acquisitions of Saudi Plastic Packaging System (previously known Savola packaging Co.) at the Fair Value which contributed to the net loss of this period. Also, the net loss of current period is due to the increase of the General and Administrative expenses, Selling and Distribution expenses, and Finance charges. Among the reasons of the decrease is the other expense which is due to differences in foreign currency exchange. The 2015 Financial results include all acquisition cost of Saudi Plastic Packaging System (previously known Savola packaging Co.) which have been consolidated as part of the consolidated interim financial statements effective Q1 2015
Reclassifications in annual financial results	Certain reclassifications have been made to prior year balances to be consistent with the current year presentation
Other notes	The 2015 Annual Consolidated Financial statements include Saudi Plastic Packaging Co. (previously know Savola packaging Co.), whereas the comperative figures of last year don’t include these results

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