Raydan accumulated losses reach 76.6% of capital

Logo of Raydan Food Co.

Raydan Food Co. stated that its accumulated losses reached SAR 55.99 million, representing 76.6% of share capital, based on the preliminary financial results for 2025.

In a Tadawul statement, the company attributed the accumulated losses to lower sales and revenues from contracts and franchising, along with lack of Hajj contracts this year.

The food services provider also cited an impairment expense on property and equipment, its share of losses from an associate, as well as impairment losses on investment in the associate.

The company said it will take some procedures in this regard, including completing the restructuring of service and operational sectors. It will also increase branch sales by diversifying menu offerings and focusing on delivery services through a comprehensive marketing plan.

Further, the firm will focus on the catering segment and enhancing revenues through long-term strategic agreements. It will also restructure the franchise model and expand geographically, particularly outside the Kingdom.

The last date for the board of directors to disclose its recommendations regarding the accumulated losses is May 30, 2026, while the final date to call for an extraordinary general meeting (EGM) to consider the company’s continuation is Sept. 27, 2026.

These dates are set in accordance with Article 132 of the Companies Law, which states: "If a joint-stock company's losses reach half of its issued capital, the board of directors shall disclose this and provide recommendations regarding those losses within 60 days from the date they become aware of the situation. Additionally, an EGM shall be convened within 180 days from the date of awareness to consider the company’s continuation while taking any necessary actions to address the losses or to dissolve the company."

The procedures and instructions applicable to listed companies in the Saudi market whose accumulated losses reach 20% or more of capital will be implemented.

The board recommended initiating the required procedures and complying with relevant laws and regulations concerning companies whose losses exceed 50% of capital, particularly in terms of disclosure and safeguarding shareholders’ rights and interests.

Raydan incurred a loss of SAR 64.7 million for 2025, compared with SAR 73.1 million in 2024, while Q4 loss reached SAR 36.3 million, according to Argaam data.