Raydan’s accumulated losses reach 53.74% of capital

The company attributed the increase in losses to lower sales, reduced revenue from contracts and franchise operations, higher selling and marketing expenses, and impairment losses on right-of-use assets and land classified under property and equipment. It also cited foreign currency translation losses.

Raydan added that it incurred losses from the revaluation of its investment in an associate and recorded its share of that entity’s losses. Cost of revenue also rose during the period.

To address the situation, the company outlined several planned measures. These include restructuring its service and operating segments, boosting sales at existing branches through menu diversification and a focus on delivery services supported by a comprehensive marketing strategy, and enhancing revenue from catering via long-term strategic agreements.

Raydan also plans to reduce operating costs by consolidating its warehouses, slaughterhouses, and central kitchen. It aims to expand geographically into currently unserved areas through new catering contracts and branch openings, and restructure its franchise model with a focus on expansion outside Saudi Arabia.

The company said its board of directors will disclose recommendations regarding the accumulated losses on July 13, 2025. An extraordinary general meeting (EGM) will be convened by no later than Nov. 10, 2025, to vote on whether to continue operations.

Raydan confirmed it will comply with the procedures and regulations set for listed companies whose accumulated losses exceed 20% of capital, and that the board has recommended taking all necessary actions in accordance with the laws applicable to companies with losses exceeding 50%. These include ensuring transparency, disclosure, and the protection of shareholder rights and interests.

Raydan also noted that the above dates are in line with Article 132 of the Companies Law, which requires that if a joint-stock company’s losses reach 50% of its paid-up capital, the board must disclose this and announce its recommendations within 60 days of becoming aware. An extraordinary general assembly must then be held within 180 days to decide whether to continue operations or dissolve the company.