Mayar’s accumulated losses hit 69.2% of capital

Logo of Mayar Holding Co.

Mayar Holding Co. said its accumulated losses reached SAR 41.53 million, or 69.2% of its SAR 60 million capital, based on unaudited internal financial results as of Dec. 31, 2025, which were approved by the board today, Jan. 15.

In a statement to Tadawul, the company said the increase was driven by lower revenues due to weaker feed sales, mainly because of price pressures on feed products, as well as a decline in elevator segment sales compared with a year earlier amid delays in contract signings and the sukuk program aimed at improving working capital.

It added that losses were also caused by lower profit margins across most feed and poultry product groups due to market price pressures, higher production costs and increased operating expenses, alongside higher credit loss provisions and rising financing costs.

Additional factors included a working capital deficit that affected operational efficiency, with the board working to address the shortfall across the group’s segments, and higher general and administrative expenses following elevator sector acquisitions in the second half of 2024. Cost-cutting and productivity measures are under way.

Mayar said the board must disclose its recommendations on the accumulated losses by March 5, 2026, while the latest date to call an extraordinary general meeting (EGM) to consider the company’s continuation is June 11, 2026.

The company said it will apply the procedures for Saudi-listed firms whose accumulated losses exceed 50% of capital, noting the board has recommended initiating the required measures and complying with regulations to ensure disclosure and protect shareholders’ rights.

Under Article 132 of the amended Companies Law, a company whose losses reach half of its issued capital must disclose this within 60 days of becoming aware of it and call an extraordinary general assembly within 180 days to decide on its continuation or dissolution, according to the statement.