SAR 2.4M compensation ruled against Herfy: ex- Acting CEO

Khalid Al-Saeed, former Acting CEO of Herfy Food Services Co.

Khalid Al-Saeed, former Acting CEO of Herfy Food Services Co., said the company’s announcement regarding his dues in the second-quarter financial results contained inaccurate and misleading information.

In a phone call with Argaam, Al-Saeed said that the court ruling in his favor, which became enforceable on March 24, 2024, was executed on the same date through the execution court.

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Under this, a sum of SAR 2.38 million was withdrawn from the company’s accounts, and the trading suspension was lifted on March 31, 2024.

These expenses were not recorded in the first quarter to avoid losses in the results, he alleged. The company reported earnings of SAR 448,200 for Q1 2024.

“I filed a complaint with the Capital Market Authority in this regard,” Al-Saeed said, calling for the need for transparency and accuracy in disclosing financial results to achieve trust and credibility in the market.

The company's Q2 2024 financials did not include the operating losses of the bakery segment, considering losses from this segment as unprecedented for the company.

According to data compiled by Argaam, Herfy incurred losses in the second quarter of 2024. This was due to higher general and administrative expenses that included the implementation of the labor court ruling in favor of Al-Saeed, in which he claimed an unused vacation balance for a period more than 18 years.