Saudi food chain Raydan's shares slump as H1 losses hit $6m

RIYADH: Raydan Food Co.’s stock dropped at the close of Thursday on news that its losses have widened by 62 percent to SR22 million ($6 million) in the first half of 2022, despite a surge in revenue during the period.

The food chain stock price plummeted 4.32 percent to reach SR13.30.

However, Raydan, which is into traditional food restaurants and catering, saw its first-half revenue surge 22 percent to reach SR80 million, according to a bourse filing.

Its accumulated losses, however, hit SR179 million at the end of the first six months of the year, representing 53 percent of its capital which amounted to SR338 million.

Raydan attributed the poor performance to higher general and administrative expenses, a rise in marketing expenses, and a decline in the company's share of the losses of the associate company.