On 2026-08-11 09:34:02 (Saudi Time), Raydan Food Co. announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ending June 30, 2026, sales/revenue declined 65.6% YoY from SAR 68.88 million to SAR 23.69 million, driven by an overall drop in restaurant sales, the complete absence of catering sales, and the closure of 8 locations in Q2 2026 (Waziriya, Sanabil, Haramain, Samer, Sharayee, Tayseer, Zaidi, and Madinah), which collectively represented 9.1% of total sales for the period. Net loss attributable to shareholders widened by 21.43% YoY from SAR 18.39 million to SAR 22.33 million, despite an improvement of SAR 5.7 million in operating losses compared to the same period last year, as the reduction in operating losses was more than offset by losses from discontinued operations. The company's financial position remains under severe stress, with accumulated losses reaching SAR 78,320,546, representing 107% of capital, and a working capital deficit of SAR 64.9 million as of June 30, 2026, raising material uncertainty about its ability to continue as a going concern.

Quarter-on-Quarter Performance Drivers

QoQ revenue fell 78.635% to SAR 4.17 million (from SAR 19.52 million in the previous quarter), driven by decreased restaurant sales. The net loss attributable to shareholders deepened by 163.771% QoQ to SAR 16.12 million (from SAR 6.11 million), primarily due to a loss from discontinued operations of SAR 5.57 million and SAR 4.8 million in G&A expenses stemming from end-of-service provisions.

Other Items

The external auditor issued an unmodified conclusion on Raydan Food Co.'s interim financial statements for the six months ended June 30, 2026, however, the auditor's report includes a material uncertainty paragraph related to going concern, stating: "We draw attention to Note (19) to the financial statements, which indicates that the total accumulated losses of the Company as of June 30, 2026, reached approximately SAR 78.3 million, representing 107% of its capital (December 31, 2025: SAR 56 million, representing 76.6% of capital). In addition, the Company's current liabilities exceeded its current assets, resulting in a working capital deficit of SAR 64.9 million as of June 30, 2026 (December 31, 2025: a deficit of SAR 60 million). These events or conditions, along with other matters as set forth in Note (19), indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern." Total shareholders' equity (after excluding non-controlling interests) turned negative at SAR -5,184,516 as of June 30, 2026, compared to SAR 62,588,825 for the same period of the previous year, a decrease of SAR 67,773,341 or 108.28%. Loss per share for the current period amounted to SAR -3.05 compared to SAR -1.16 for the same period of the previous year. Additionally, certain comparative figures for the six-month period ended June 30, 2025 were reclassified, including losses on disposal of property, plant, and equipment amounting to SAR 10,729,422 and net other income amounting to SAR -5,238,027, which adjusted the comparative operating loss from SAR -21,482,301 to SAR -15,814,271, with no impact on net loss.

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