Raydan Food says accumulated losses reach 48.06% of capital

One of Raydan’s branches

Raydan Food Co. announced that its accumulated losses amounted to SAR 162.22 million, or 48.06% of capital, reaching SAR 337.50 million, as of March 31, 2022, according to a bourse statement.

The loss was mainly due to operational and net losses, along with losses of disposal of property, plant and equipment, a decrease in the value of assets held for sale, and a decline in the value of right-of-use assets.

The company also cited a decrease in the value of real estate, plant and equipment, as well as share of the associate's losses and losses from discontinued operations of the subsidiary.

Raydan Food will take measures with regard to such losses, which include reducing the operating losses of branches, especially after assessing the decline, in addition to improving performance and increasing activity revenues and franchise revenues. The company will also reduce the cost of sales to reach a gross profit and decrease capital losses and study the expansion plan.

The Saudi listed firm affirmed that procedures and instructions related to listed companies with accumulated losses amounting to 20% or more of its share capital will apply.