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Doubts have been raised about Saudi Arabia-listed Raydan Food ability to continue as a going concern as accumulated losses have so far reached more than 75.9 million riyals ($20 million), according to a Tadawul filing.
The accumulated losses at the end of Q1 2021, representing 33.74 percent of the capital, have been attributed to the decrease in sales and other revenues during the coronavirus pandemic, coupled with an increase in operational costs.
From January to March this year, sales reached 34.3 million riyals, down 29 percent from 48.6 million riyals during the same period in 2020, the company told the Saudi Stock Exchange (Tadawul), on which its shares trade.
The company operates restaurants across the kingdom.
Its total loss during the first quarter alone reached more than 2.8 million riyals, compared to a profit of 78,439 riyals for the same quarter of the previous year.
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Net loss after Zakat and tax during the first three months of the year also reached -8.9 million riyals, compared to a net loss of -6.6 million riyals a year earlier.
The company’s current liabilities have likewise exceeded current assets by 36.9 million riyals.
“Those events and circumstances, among other matters, indicate that a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern,” the filing said.
(Writing by Cleofe Maceda; editing by Seban Scaria)
Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.
© ZAWYA 2021
