Raydan says accumulated losses reach 48.95% of capital

A Raydan Food branch

Raydan Food Co. announced that its accumulated losses reached 48.95% of capital, based on the annual financial results for 2024, which were disclosed on Tadawul website on March 31, 2025.

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Lower sales and revenues from contracts and franchises, along with higher selling and marketing expenses, led to the losses, Raydan said in a statement to Tadawul.

It also cited impairment in the value of the right to use assets, impairment in the value of land, foreign currency valuation, losses from impairment in investment in an associate and the company's share of the associate's losses.

Accordingly, Raydan will restructure the service and operational segments, increase branch sales by diversifying the products offered within restaurants, and focus on delivery services through a comprehensive marketing plan.++

It also plans to emphasize the catering segment and boost revenue by signing strategic long-term agreements.

The company will seek to reduce operational costs by consolidating warehouses, slaughterhouses, and the central kitchen, ensure geographically expansion, open new branches and restructure franchise operations.

Procedures and instructions applicable on companies listed in Saudi capital market whose accumulated losses reach 20% or more out of the capital will apply, the statement added.

According to data compiled by Argaam, Raydan widened net loss to SAR 73.1 million in 2024 from SAR 30.9 million in 2023.