A Raydan Food branch
Raydan Food Co. said its accumulated losses amounted to 66.8% of its capital, based on preliminary financial results for the period ended Sept. 30, 2025. 
In a statement to Tadawul, the company attributed the losses mainly to lower sales, reduced revenue from contracts and franchise operations, higher selling and marketing expenses and impairment charges on right-of-use assets and land.
Raydan also cited other factors including, impairment of property and equipment, impairment losses on its investment in an associate, its share in discontinued operations – a subsidiary under liquidation, its share of the associate’s losses, and higher cost of sales.
The company said it plans to restructure its service and operational segments, increase branch sales by diversifying restaurant offerings and focusing on delivery services under a comprehensive marketing plan, and target the catering segment by signing long-term strategic agreements to boost revenue. It also aims to cut operational costs by consolidating warehouses, slaughterhouses, and the central kitchen; expand geographically into unserved areas through catering contracts and new branch openings; and restructure and grow its franchise model, particularly outside the Kingdom.
It added that procedures and regulations for listed companies with accumulated losses of 20% or more of their capital will apply. The board has recommended taking the necessary steps and complying with laws and regulations applicable to companies whose accumulated losses exceed 50% of capital, while safeguarding shareholders’ rights and interests.
Raydan further added that the last day for board of directors to publish the EGM invitation to consider the company’s continuation is Nov. 10, 2025, noting that the dates are in line with Article 132 of the Companies Law, which requires a joint-stock company whose losses reach half of its issued capital to disclose this and provide recommendations within 60 days from the date of awareness. An extraordinary general assembly must then be held within 180 days to decide on the company’s continuation or dissolution and take necessary actions to address the losses.
Raydan said it had already taken steps to address the losses. On May 29, 2025, it announced on Tadawul the board’s recommendation to reduce the company’s capital, followed by a capital increase through a rights issue as part of its loss-recovery plan. On Aug. 7, 2025, it submitted the capital reduction request to the Capital Market Authority (CMA) to complete the required regulatory procedures. Additionally, on Sept. 18, the company announced the CAM approval on the request submitted by Raydan to reduce its capital from SAR 158.08 million to SAR 73.14 million.
Meanwhile, the company announced on Nov. 3 that its shareholders approved the capital reduction by a vote of 95%. The reduction became effective at the end of the second trading day following the extraordinary general meeting (EGM) held on Nov. 2. The company will announce the results of this reduction at a later date.
A Raydan Food branch
Raydan Food Co. said its accumulated losses amounted to 66.8% of its capital, based on preliminary financial results for the period ended Sept. 30, 2025.
In a statement to Tadawul, the company attributed the losses mainly to lower sales, reduced revenue from contracts and franchise operations, higher selling and marketing expenses and impairment charges on right-of-use assets and land.
Raydan also cited other factors including, impairment of property and equipment, impairment losses on its investment in an associate, its share in discontinued operations – a subsidiary under liquidation, its share of the associate’s losses, and higher cost of sales.
The company said it plans to restructure its service and operational segments, increase branch sales by diversifying restaurant offerings and focusing on delivery services under a comprehensive marketing plan, and target the catering segment by signing long-term strategic agreements to boost revenue. It also aims to cut operational costs by consolidating warehouses, slaughterhouses, and the central kitchen; expand geographically into unserved areas through catering contracts and new branch openings; and restructure and grow its franchise model, particularly outside the Kingdom.
It added that procedures and regulations for listed companies with accumulated losses of 20% or more of their capital will apply. The board has recommended taking the necessary steps and complying with laws and regulations applicable to companies whose accumulated losses exceed 50% of capital, while safeguarding shareholders’ rights and interests.
Raydan further added that the last day for board of directors to publish the EGM invitation to consider the company’s continuation is Nov. 10, 2025, noting that the dates are in line with Article 132 of the Companies Law, which requires a joint-stock company whose losses reach half of its issued capital to disclose this and provide recommendations within 60 days from the date of awareness. An extraordinary general assembly must then be held within 180 days to decide on the company’s continuation or dissolution and take necessary actions to address the losses.
Raydan said it had already taken steps to address the losses. On May 29, 2025, it announced on Tadawul the board’s recommendation to reduce the company’s capital, followed by a capital increase through a rights issue as part of its loss-recovery plan. On Aug. 7, 2025, it submitted the capital reduction request to the Capital Market Authority (CMA) to complete the required regulatory procedures. Additionally, on Sept. 18, the company announced the CAM approval on the request submitted by Raydan to reduce its capital from SAR 158.08 million to SAR 73.14 million.
Meanwhile, the company announced on Nov. 3 that its shareholders approved the capital reduction by a vote of 95%. The reduction became effective at the end of the second trading day following the extraordinary general meeting (EGM) held on Nov. 2. The company will announce the results of this reduction at a later date.
