Raydan Food says accumulated loss at 84.9 % of capital

As reasons behind the losses, Raydan cited lower sales, decreased revenue from contracts and franchises, absence of Hajj contracts this year, impairment expenses related to property and equipment, loss share from an associate and impairment losses related to investment in an associate.

Raydan aims to implement corrective measures including the restructuring of service and operational sectors and increasing branch sales through product diversification within restaurants.

The company also seeks to focus on delivery services via an integrated marketing plan, focus on the catering sector and enhance revenue through long-term strategic agreements, restructure the franchise business and expand geographically, particularly outside the Kingdom.

The board of directors is expected to announce its recommendation on accumulated losses by May 30.

The last date for the board to call for a shareholders meeting to consider the company’s continuation is Sept. 27.

Procedures applicable to Saudi-listed companies whose accumulated losses reached 20% or more of capital will be implemented.

The board of directors also recommended initiating the required procedures and complying with the relevant laws and regulations concerning companies whose losses exceeded 50% of capital, particularly with respect to disclosure requirements and safeguarding shareholders’ rights and interests.