Raydan Food says accumulated losses reach 46.67% of capital

Raydan Food Co. building

Raydan Food Co. announced that it will take the required legal procedures after its accumulated losses amounted to SAR 157.5 million, or 46.67% of its capital of SAR 337.5 million, as of Dec. 31, 2021, according to a bourse statement.

The loss was mainly due to losses of excluding properties, machinery and equipment, as well as impairments of held-for-sale assets, right-of-use assets and real estate assets, machinery and equipment.

In addition, the company reported losses from its share of an associate firm, discontinued operations of a subsidiary firm, and operating losses.

Raydan Food will take measures by reducing branches’ operating losses, especially after assessing the decline, improving performance, boosting activity and franchise revenues, shrinking the cost of sales to reach a gross profit, narrowing capital losses, and studying the expansion plan.

The Saudi listed firm affirmed that procedures and instructions related to listed companies with accumulated losses amounting to 35% or more of its share capital will apply.

According to data compiled by Argaam, Raydan Food narrowed net losses after Zakat and tax to SAR 42.2 million in 2020, from SAR 116.8 million a year earlier.