Raydan accumulated losses reach 107% of capital

Logo of Raydan Food Co.

Raydan Food Co. stated that its accumulated losses reached SAR 78.3 million, or 107% of capital, based on its quarterly financial results for the period ended June 30, 2026.

The company said in a statement on Tadawul that its board was notified of the accumulated losses on Aug. 10, 2026, noting that the losses resulted from lower sales, the absence of Hajj contracts this year, and an impairment expense on property and equipment.

Other factors contributing to the losses included the closure of the company’s Al-Waziriyah, Al-Sanabel, Al-Haramain, Al-Samer, Al-Shara’i, Al-Tayseer, Al-Zaidi, and Al-Madinah 2 branches.

Raydan said it will seek to offset the decline in sales from the closed branches by increasing sales at its existing branches through product diversification, while completing the restructuring of its service and operational sectors to reduce fixed administrative and operating costs.

The company will focus on the catering sector and sign long-term strategic agreements to ensure revenue stability, in addition to completing procedures related to the capital reduction and increase, the statement said.

The procedures and regulations applicable to companies listed on the Saudi Exchange whose accumulated losses reach 20% or more of their capital will be applied.

The board recommended initiating the required procedures and complying with the relevant rules and regulations applicable to companies whose accumulated losses exceed 50% of their capital, particularly regarding disclosure and protecting shareholders’ rights and interests.

The company noted that September 27, 2026, is the deadline for inviting the extraordinary general meeting (EGM) to consider the continuation of the company and take any necessary measures to address the losses or dissolve the company.

It confirmed that the above dates were set in accordance with Article 132 of the Companies Law, which stipulates that if a joint-stock company’s losses reach half of its issued capital, the board must disclose this and its recommendations regarding the losses within 60 days of becoming aware of them.

In addition, the board must call an EGM to convene within 180 days from the date of such notice to consider whether the company should continue, take the necessary measures to address the losses, or dissolve the company.

According to Argaam data, Raydan posted a loss of approximately SAR 16.1 million in Q2 2026.