Raydan Food Records Losses of 17 mln during the 3Q, down 54%

Raydan Food Company recorded losses after zakat and tax of 17.47 million riyals during the third quarter, compared to losses of 38 million riyals during the same quarter of the previous year, a decrease of 54%.

This came after the Raydan Food Company announced on Thursday its interim financial results for the period ending on 2021-09-30 (nine months).

The operational loss amounted to SR15.2 million during the third quarter, compared to losses of SR35.38 million during the same quarter of the previous year, a decrease of 57%.

The gross loss amounted to SR4.9 million during the third quarter, compared to a loss of SR1.79 million during the same quarter of the previous year, an increase of 173.74%.

The net loss after zakat and tax during the current period amounted to SR30.49 million, compared to a loss of SR53.83 million during the same period of the previous year, down 43.35%.

The loss per share during the current period amounted to SR1.27, compared to a loss of SR2.39 during the same period of the previous year.

The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is decrease in losses in the value of real estate, plant and equipment / Decrease in losses on the disposal of real estate, plant and equipment / Increase in revenues and the other revenues / Decrease in general and administrative expenses / Profits from excluding the right of use assets / Share of profits of the associate company compared to the same quarter of the previous year.

The reason of the increase (decrease) in the net profit during the current quarter compared to the previous period of the current year is decrease in revenues / increase in general and administrative expenses / recording losses Decrease in the value of real estate, machinery and equipment / disposal losses in the value of real estate, machinery and equipment / increase in financing expenses / increase in zakat and foreign income tax expenses.

The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is decrease in impairment losses on property, plant and equipment / Decrease in disposal losses in the value of property, plant and equipment / Gain on disposal of right-of-use assets / Company’s share of associate’s profits / Increase in other revenues.

Modification, qualification or emphasis of a matter as stated within the external auditor opinion:

A) The balance of the investment in Al-Jonah Sweets and Outside Catering Limited (the “Associate”) in the interim condensed consolidated statement of financial position as at 30 September 2021 and 31 December 2020 amounted to SR 71.8 million and SR 71.8 million, respectively. We were unable to obtain sufficient appropriate audit evidence regarding the balance of the Group’s investment in the Associate as at 31 December 2020, because we were unable to review the Associate’s accounts. Also, we were unable to perform appropriate review procedures regarding the balance of the Group’s investment in the Associate as at 30 September 2021 and the Group’s share of the Associate’s net profit for the three month and nine-month periods ended 30 September 2021 and the three month and nine-month periods ended 30 September 2020, because we were unable to review the relevant financial information. Accordingly, we were unable to determine whether any adjustments to these amounts were necessary.

B) The International Accounting Standard 36 “Impairment of Assets” requires management to assess, at the end of each financial reporting period, whether there is any indication of impairment of assets. In the event of any such indication, the Group must estimate the recoverable amount of the asset and record an impairment loss, if any. Management did not perform an assessment for the impairment of property, plant and equipment as at 30 September 2021 and 31 December 2020, amounting to SR 149,4 million and SR 167 million, respectively. Also, management did not perform an assessment for the impairment of investment in an associate as at 30 September 2021 and 31 December 2020 amounting to SR 71.8 million and SR 71.8 million, respectively. Accordingly, we were unable to determine whether any adjustments to the book value of property, plant and equipment and investment in an associate were necessary.

Reclassification of Comparison Items

– The investment amount in the associate company for the financial period ending on December 31, 2020 (the period compared to the consolidated statement of financial position September 30, 2021) has been modified to become 71,823,101 SR. instead of 80,439,428 SR. (as in the announced financial statements December 31, 2020 ) with a difference of 8,616,327 SR. (Note No. 16 – Adjustment of comparative figures) and it has an impact on the amount of accumulated losses, as it became 75,657,552 SR. instead of 67,041,225 SR. (as in the announced financial statements December 31, 2020 ), and thus the amount of shareholders’ equity (after excluding minority interests amounted to 177,262,903 SR. instead of 185,879,230 SR. (as in the announced financial statements December 31, 2020 )

It has an impact on (non-current assets / shareholders’ equity). (Within the comparative financial position statement December 31, 2020 for the current financial period September 30, 2021 ).

– The revenue figures, cost of revenue, other operating income, general and administrative expenses, currency differences, zakat, foreign income tax, and a clarification of losses on the exclusion of real estate, machinery and equipment in a separate item amounting to 6,017,257 SR. in the statement of profit or loss and other comprehensive income for the three and nine months, respectively, as on September 30, 2020 (previously announced period) in the statement of profit or loss and other comprehensive income for the current three and nine month period as on September 30, 2021.

– It has an impact on total loss and operating loss and has no effect on net loss.

– Sales during the current quarter amounted to 29,832,844 SR., compared to 28,164,545 SR. for the same quarter of the previous year, with an increase of 1,668,299 SR., and by 5.92%

– Total loss during the current quarter amounted to -4,899,937 SR., compared to a total loss of -1,789,968 SR. for the same quarter of the previous year, with an increase of -3,109,969 SR., and by 173.74%.

– The operating loss during the current quarter amounted to -15,200,964 SR., compared to an operating loss -35,387,322 SR. for the same quarter of the previous year, with a decrease of 20,186,358 SR., and by 57.04%.

– The net loss after zakat and tax during the current quarter amounted to -17,474,473 SR., compared to a net loss of -38,332,537 SR. for the same quarter of the previous year, with a decrease of 20,858,064 SR., and by -54.41%. And compared to a net loss of -4,140,637 SR. for the previous quarter, an increase of -13,333,836 SR., and by 322.02%.

– Total loss from comprehensive income during the current quarter amounted to -17,481,401 SR. Compared to a total loss from other comprehensive income – 38,275,134 SR. for the same quarter of the previous year, with a decrease of 20,793,733 SR., and by -54.33%. Compared to a total loss from comprehensive income – 4,134,864 SR. for the previous quarter, an increase of -13,346,537, and by 322.78%.

– Sales during the current period amounted to 95,910,213 SR., compared to 97,001,259 SR. for the same period of the previous year, with a decrease of – 1,091,046 SR. and by -1.12%.

– The total loss for the current period amounted to – 7,532,323 SR., compared to a total loss of – 5,500,045 SR. for the same period of the previous year, with an increase of – 2,032,278 SR., and by 36.95%.

– The operating loss during the current period amounted to – 25,648,126 SR., compared to an operating loss – 47,278,248 SR. for the same period of the previous year, with a decrease of 21,630,122 SR., and by – 45.75%.

– The net loss after zakat and tax during the current period amounted to – 30,494,638 SR., compared to a net loss – 53,834,539 SR. for the same period of the previous year, with a decrease of 23,339,901 SR., and by – 43.35%.

– Total loss from comprehensive income during the current period amounted to – 30,494,990 SR., compared to total loss from comprehensive income – 53,785,308 SR. for the same period of the previous year, with a decrease of 23,290,318, and by – 43.30%.

-Loss per share during the current period amounted to – 1.27 SR., compared to a loss per share – 2.39 SR. for the same period of the previous year.

– The accumulated losses at the end of the current period amounted to – 109,235,260 SR., and by 32.37% of the capital.

– Total shareholders’ equity (after excluding minority interests) during the current period (September 30, 2021) amounted to 256,184,843 SR., compared to 217,609,410 SR. for the same period of the previous year (September 30, 2020), an increase of 38,575,433 SR., and by 17.73%.