Takween Advanced Industries Co. — Interim / Quarterly Report 2015

Jan 21, 2016

Takween Advanced Industries Co. announces the interim financial results for the period ending on 31-12-2015 (Twelve Months)

1201 · 21/01/2016 08:23:54 · Announcement #40937 · View on Saudi Exchange

Takween Advanced Industries Co. announces the interim financial results for the period ending on 31-12-2015 (Twelve Months)

Element	Current quarter	Similar quarter for previous year	% Change current	Previous quarter	% Change previous
Net profit (loss)	-	-	-	-	-
Gross profit (loss)	17,163	32,660	-	55,720	-
Operational profit (loss)	-	19,102	-	17,880	-
All figures are in (Thousands) Saudi Arabia, Riyals

Element	Current period	Similar period for previous year	% Change
Net profit (loss)	-	55,323	-
Gross profit (loss)	177,923	121,290	46.69
Operational profit (loss)	13,854	56,858	-
Earning or loss per share, Riyals	-	1.58	-
All figures are in (Thousands) Saudi Arabia, Riyals

Element	EXPLAINATION
Reasons of increase (decrease) for quarter compared with same quarter last year	The increase of net loss in the current quarter compared with similar quarter of previous year is due to increase of COGS which represents 95% of the Sales Revenue comparing to 82% of similar quarter 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 quarter. Takween results have been affected by SAAF losses, a wholly owned subsidiary of Takween. SAAF sell 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 quarter. 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 increase in the net loss of this quarter. Also, the increase of the net loss is due to the increase of the General and Administrative expenses, Selling and Distribution expenses, and Finance charges. However, the other expenses due to differences in foreign currency exchange, the R&D expenses, and Zakat expenses decreased in this quarter compared with similar quarter of previous year. The comparative figures of last year doesn’t include the financial statement 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
Reasons of increase (decrease) for period compared with same period last year	The reasons of net loss of current period compared with net income of similar period last year is due to the increase of COGS which represents 89.6% of the Sales Revenue comparing to 84.2% of similar period 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 sell 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. However, the other expenses due to differences in foreign currency exchange, the R&D expenses, and Zakat expenses decreased in this period compared with similar period of previous year. The comparative figures of last year doesn’t include the financial statement 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
Reasons of increase (decrease) for quarter compared with previous quarter	The increase of net loss in the current quarter compared with similar quarter of previous year is due to decrease in Sales revenue and increase of COGS which represents 95% of the Sales Revenue comparing to 87.9% of previous. 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 quarter. Takween results have been affected by SAAF losses, a wholly owned subsidiary of Takween. SAAF sell 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 quarter. 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 increase in the net loss of this quarter. Also, the increase of the net loss is due to the increase of Selling and Distribution expenses, Finance charges and Zakat expenses. However, the General and Administrative expenses decreased in this quarter compared with previous quarter.
Reclassifications in quarterly financial results	Certain figures have been reclassified to comply with the current period presentation of the Financial Statements
Other notes	The results of the period ending on 31-12-2015 (Twelve months) 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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