RAYDAN Says Accumulated Losses Reach 48.95% of Capital

Raydan Food Co. announced on Monday that its accumulated losses reached 48.95% of capital, equivalent to SAR 77.3 million, based on the annual financial results ending December 31, 2024.

The Company explained that the reasons for the decline in profits are: lower sales, lower revenues from contracts and franchises, higher selling and marketing expenses, impairment of the right to use assets, impairment of land, foreign currency valuation differences, impairment losses on investments in an associate, and the Company’s share of the associate’s losses.

It indicated that it will take a number of measures to address these losses, including: restructuring the service and operational sectors, increasing branch sales by diversifying products within restaurants and focusing on delivery services through a comprehensive marketing plan, focusing on the catering sector and boosting revenues by signing strategic long-term agreements, reducing operational costs by consolidating warehouses, slaughterhouses and the central kitchen, geographical expansion in areas not currently covered through catering contracts, in addition to opening branches there to strengthen presence, restructuring the commercial franchise and geographical expansion, especially outside the Kingdom.