Raydan losses increase to SR17.2 mln during Q2, increase of 305.3%

Raydan Food Company revealed that the net loss after zakat and tax in the second quarter increased to SR17.2 million, compared to a loss of SR4.2 million in the same quarter of last year, at a rate of 305.3%.

This came after the announcement on Thursday of the preliminary financial results for the period ending 30.06.2022 (six months).

The operational loss amounted to SR6 million in the second quarter, compared to a loss of SR2.7 million in the same quarter of the previous year, an increase of 117.2%.

The net loss after zakat and tax in the 6-month period amounted to SR22 million, compared to a loss of SR13.5 million in the same period last year, a growth of 62.3%.

The gross shareholders’ equity “without minority rights” amounted to SR186 million in the current period, compared to SR171.7 million in the same period last year, an increase of 8.2%.

The loss per share in the current period is SR0.65, compared to SR0.6 in the same period last 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:

The increase in net loss is due to the increase in general and administrative expenses, the increase in marketing expenses and the company’s share of losses of the associate company and losses from the exclusion of property, plant and equipment.

The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is:

The increase in net loss is due to the increase in general and administrative expenses, the increase in marketing expenses and the company’s share of losses of the associate company and losses from the exclusion of property, plant and equipment.

The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is:

The increase in net loss is due to the increase in general and administrative expenses, the increase in marketing expenses and the company’s share of losses of the associate company and losses from the exclusion of property, plant and equipment.

– The comparative figures in the consolidated interim consolidated statement of profit or loss and comprehensive income for the second comparative quarter 2021 have been reclassified within the financial statements for the second quarter 2022 due to discontinued operations and the company’s share of losses of the associate company (has the effect of increasing the net loss by SR101,824) compared to previously announced.

– The comparative figures in the interim consolidated statement of profit or loss and comprehensive income for the first half of the year 2021 have been reclassified within the financial statements for the first half 2022 due to discontinued operations and the company’s share of the business results of the associate company (has the effect of increasing the net loss by SR 472,041) compared to what was announced previously.

– Sales during the current quarter amounted to SR43,048,129, compared to SR 33,203,653, for the same quarter of the previous year, in an increase of SR 9,844,476, and per cent of 29.65%.

– Gross profit during the current quarter amounted to SR2,544,201, compared to a gross profit of SR 310,494 for the same quarter of the previous year, in an increase of 2,233,707 SR, and per cent of 719.71%.

– The operational loss during the current quarter amounted to SR6,022,619, compared to an operational loss of SR 2,772,544 for the same quarter of the previous year, in an increase of SR3,250,075, and per cent of 117.22%.

– The net loss after Zakat and Tax during the current quarter amounted to SR17,196,696, compared to a net loss of SR4,242,461 for the same quarter of the previous year, in an increase of SR12,954,235, and percent of 305.35% and compared to a net loss of SR4,713,692 for the previous quarter, in an increase of SR12,483,004 and per cent of 264.82%.

– Gross loss from comprehensive income during the current quarter amounted to SR17,197,993. Compared to a total loss of SR4,236,688 for the same quarter of the previous year, in an increase of SR12,961,305, and per cent of 305.93% compared to a total loss of comprehensive income of SR4,802,599 for the previous quarter, in an increase of 12,395,394 and per cent of 258.10%.

– Sales during the current period amounted to SR80,386,248, compared to SR66,077,369 for the same period of the previous year, in an increase of SR14,308,879, and per cent of 21.65%.

– Gross profit for the current period amounted to SR4,907,893, compared to a gross loss of – SR2,632,386 for the same period of the previous year, in an increase of SR7,540,279, and per cent of 286.44%.

– The operational loss during the current period amounted to SR8,981,205, compared to an operating loss of SR10,447,161 for the same period of the previous year, in a decrease of SR1,465,956, and per cent of 14.03%.

– The net loss after Zakat and Tax during the current period amounted to SR21,910,388, compared to a net loss of SR13,492,206 for the same period of the previous year, in an increase of SR8,418,182, and per cent of 62.39%.

– The gross loss from comprehensive income during the current period amounted to SR22,000,592, compared to a total loss from comprehensive income of SR13,485,630, for the same period of the previous year, in an increase of SR8,514,962, and per cent of 63.14%.

– The loss per share during the current period amounted to SR – 0.65, compared to a loss per share of SR -0.60 for the same period of the previous year.

– The accumulated losses at the end of the current period amounted to SR179,415,330, and per cent of 53.16% of the capital.

– Gross shareholders’ equity (after excluding minority rights) during the current period (June 30, 2022) amounted to SR185,916,577, compared to SR171,748,626 for the same period of the previous year (June 30, 2021), in an increase of SR14,167,951, and per cent of 8.25%.

The Group’s ability to continue as a going concern. The Group’s ability to continue as a going concern depends on adequate funding and the profitability of future operations. Accordingly, and as corrective measures, the Board of Directors, in their meeting held on 24 August 2022, proposed to reduce the company’s capital by amortizing its accumulated losses in the amount of SR179,415,330, until June 30, 2022, That is 53.16% of the capital, So the capital after reduction is SR158,084,670, provided that this is presented to the shareholders and the Assembly, Accordingly, the accompanying interim condensed consolidated financial statements have been approved on the assumption that the Group will continue to operate in accordance with the going concern principle.