Raydan Food accumulated losses reach SAR 81.2 mln or 36.1% of capital

A branch of Raydan Food

Raydan Food Co. announced that its accumulated losses as of June 30, 2021, stood at SAR 81.2 million, representing 36.1% of capital.

Raydan Food Co. said in a bourse statement that its accumulated losses as of June 30, 2021, stood at SAR 81.2 million, representing 36.1% of capital.

The company attributed the accumulated losses to lower revenues and higher cost of sales as a result of COVID-19; closure of branches, either temporarily and permanently; and recording capital losses as a result of the decline in the value and sale of assets.

The company will work to reduce capital losses by granting commercial franchises, finding cheaper operational solutions, and benefiting from its capital increase to improve future operational and marketing performance.

Procedures and instructions will be applicable on companies listed in the main market, whose accumulated losses reach 35% or more of their capital.

According to data compiled by Argaam, Raydan Food narrowed losses to SAR 13 million in H1 2021, compared to SAR 15.5 million in the same period in 2020.

The decline in losses was driven by lower selling and marketing expenses, financing expenses, Zakat expenses and lower fixed operating costs related to closed branches.