Raydan Food Co. announces its Interim Financial results for the Period Ending on 2025-09-30 ( Nine Months )

We would like to draw attention to Note (19) to the condensed interim financial statements, which indicates that the Company’s accumulated losses as of 30 September 2025 amounted to SAR 105,559,262 representing 66.8% of the share capital (31 December 2024: SAR 77,386,141, representing 48.9% of the share capital). The Company’s current liabilities exceeded its current assets, resulting in a working capital deficit of SAR 56,829,482 (31 December 2024: SAR 35,233,245), These matters, indicate the existence of a material uncertainty that may cast significant doubt on the Company’s ability to continue as a going concern, Nevertheless, the Company is primarily dependent on executing its business plans to generate sufficient cash flows to enable it to meet its obligations as they fall due and to continue its operations without significant deficiency.

These plans include a package of corrective measures such as diversifying the Company's product offerings to increase branch sales, focusing on the catering segment, enhancing revenues through Signing long-term strategic agreements, expanding geographically into currently underserved areas, restructuring the franchise model, and reducing operating expenses by consolidating warehouses, slaughterhouses, and the central kitchen.

In addition, on 29 May 2025 corresponding to 2 Dhul-Hijjah 1446H, the Company announced the Board of Directors’ recommendation to the Extraordinary General Assembly of shareholders to restructure the Company’s capital through a capital reduction followed by a rights issue. On 2 November 2025, the Company announced that the General Assembly approved, by a 95% majority, the Board of Directors’ recommendation to reduce the Company’s share capital by cancelling 8,494,864 shares, such that 0.53736 shares are cancelled for each owned share, Accordingly, the financial statements have been prepared on a going concern basis. Our conclusion has not been modified in respect of this matter.

EMPHASIS OF MATTER:

We would like to draw attention to Note (7), which states that during the period ended 30 September 2025, the Company’s Board of Directors resolved to liquidate the operations of its subsidiary in the Arab Republic of Egypt. A liquidator was appointed on 7 January 2025, with the liquidation period set to one year starting from the date of registration in the commercial registry, Accordingly, Raydan Food Company lost control over Raydan Restaurants and Kitchens Egypt (a company under liquidation), and the financial statements of Raydan Food Company as of and for the period ended 30 September 2025 have been prepared and presented to reflect this. The results of operations of Raydan Restaurants and Kitchens Egypt for the period ended 30 September 2025 have been classified under “Income from discontinued operations” in these accompanying condensed interim financial statements, The comparative figures presented in the accompanying condensed interim financial statements represent the consolidated financial statements as of 31 December 2024 and for the three- and nine-month periods ended 30 September 2025, as the subsidiary was excluded during the current period. Our conclusion has not been modified in respect of this matter.