On 2026-05-12 08:15:53 (Saudi Time), Raydan Food Co. announced its Interim financial results for the three months ended on March 31, 2026.

Year-on-Year Performance Drivers

Sales declined 55.84% YoY to SAR 19.52 million from SAR 44.21 million, primarily due to decreased branch sales, reduced revenue from contracts and franchises, and the absence of Hajj contracts this year. Net loss improved by 22.07% to SAR 6.11 million from SAR 7.84 million in the prior year, despite lower sales, mainly due to reduced operational losses and the company's improved cost structure. However, the company's share of associate company losses increased to SAR 1.53 million compared to SAR 0.96 million in the same quarter last year, partially offsetting the operational improvements.

Quarter-on-Quarter Performance Drivers

QoQ revenue declined 17.45% to SAR 19.52 million due to sales seasonality. Net loss improved 39.27% to SAR 6.11 million from SAR 10.06 million in the previous quarter, driven by decreased revenues but offset by lower revenue costs, reduced selling and marketing expenses, and reduced administrative expenses. However, this improvement was partially offset by increased share of losses from the associate company.

Other Items

The auditors issued an unmodified conclusion but included a material uncertainty related to going concern paragraph, noting that accumulated losses reached SAR 62,101,186 representing 84.9% of capital as of March 31, 2026, compared to 76.6% at December 31, 2025. Current liabilities exceeded current assets by SAR 56,716,477, creating significant doubt about the company's ability to continue as a going concern, though the financial statements were prepared on a going concern basis as the company relies on implementing business plans to generate sufficient cash flows. Total shareholders' equity declined 84.91% to SAR 11,034,844 from SAR 73,136,021 in the prior year. The company announced that procedures for listed companies with accumulated losses exceeding 20% of capital will be applied, and the Board of Directors must disclose recommendations regarding losses by May 30, 2026, and convene an Extraordinary General Meeting by September 27, 2026, to consider the company's continuation in accordance with Article 132 of the Companies Law.

Original announcement:

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