Raydan says accumulated losses reach 53.16% of capital

One of Raydan’s branches

Raydan Food Co.’s accumulated losses stood at 53.16%, or SAR 179.42 million, of the company's SAR 337.50 million capital, on June 30, 2022.

In a statement to Tadawul, Raydan said the main reasons that led to losses include operating losses and achieving a net loss. The company also logged losses on disposal of property, plant and equipment, along with a decrease in the value of assets for sale.

Raydan also noted a decline in the value of right-of-use assets; a decrease in the value of real estate, plant and equipment; the company's share in loss from associate; and losses from discontinued operations of the subsidiary company.

In order to extinguish the losses, Raydan aims to reduce the operating losses of branches, improve performance and increase activity and franchise revenues, and, reduce the cost of sales, along with reducing capital losses and studying expansion plans.

The procedures for Saudi-listed, whose accumulated losses amounted to 20% or more of capital, will be applied, the statement added.

In addition, Raydan’s board also recommended starting the required procedures and complying with the relevant laws and regulations with regard to companies whose losses exceeded 50% of the capital in terms of disclosure and preservation of shareholders' rights and interests.