Raydan’s accumulated losses reach 66.8% of capital

 A Raydan Food branch

Raydan Food Co. said its accumulated losses amounted to 66.8% of capital, based on preliminary financial results for the period ended Sept. 30, 2025.

In a statement to Tadawul, the company attributed the losses mainly to lower sales, reduced revenue from contracts and franchise operations, higher selling and marketing expenses and impairment charges on right-of-use assets and land.

Raydan also cited other factors, including impairment of property and equipment, impairment losses on its investment in an associate, its share in discontinued operations – a subsidiary under liquidation, its share of the associate's losses, and higher cost of sales.

The company said it plans to restructure its service and operational segments, increase branch sales by diversifying restaurant offerings and focusing on delivery services under a comprehensive marketing plan.

It will target the catering segment by signing long-term strategic agreements to boost revenue.

It also aims to cut operational costs by consolidating warehouses, slaughterhouses, and the central kitchen; expand geographically into unserved areas through catering contracts and new branch openings; and restructure and grow its franchise model, particularly outside the Kingdom.

It added that procedures and regulations for listed companies with accumulated losses of 20% or more of their capital will apply. The board recommended taking the necessary steps and complying with laws and regulations applicable to companies whose accumulated losses exceed 50% of capital, while safeguarding shareholders’ rights and interests.

Raydan further added that the last day for board of directors to publish the EGM invitation to consider the company’s continuation is Nov. 10, 2025.

Raydan said it had already taken steps to address the losses. On May 29, it announced on Tadawul the board’s recommendation to reduce capital, followed by a capital increase through a rights issue as part of its loss-recovery plan.

On Aug. 7, it submitted the capital reduction request to the Capital Market Authority (CMA) to complete the required regulatory procedures. Additionally, on Sept. 18, the company announced CMA’s approval to reduce capital from SAR 158.08 million to SAR 73.14 million.

On Nov. 3, Raydan said its shareholders approved the capital reduction by a vote of 95%. The reduction became effective at the end of the second trading day following the extraordinary general meeting (EGM) held on Nov. 2. The company will announce the results of this reduction at a later date.