Saudi Arabia’s Raydan Food Co (RAYDAN) has said there has been temporary and permanent closures of some of its branches as its cumulative losses reached $21 million (SAR 81 million).
The cumulative losses, as of 30th June 2021, represented 36.08 percent of its total capital - which is SAR 225 million.
The losses as of the end of the first quarter of 2021 were 33.74 percent of capital.
In a statement to the Saudi Stock Exchange, Tadawul, the company gave reasons for the losses including decrease in revenue and an increase in the cost of sales as a result of the COVID-19 pandemic, and closing some branches temporarily and permanently.
The company, which operates restaurants across the kingdom, said it would work to reduce capital losses by granting commercial franchises, finding less costly operational solutions and that it would benefit from a capital hike announced last month.
(Writing by Imogen Lillywhite, editing by Daniel Luiz)
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