UAE – Leading catering company ADNH Catering has reported revenues of AED 1.2 billion (US$326.7 million) in the first nine months of 2024, resulting in EBITDA of AED 167 million (US$45.6 million) at an EBITDA margin of 13.7%.
ADNH Catering reported a net profit of AED 110 million (US$29.9 million), achieving a solid net profit margin of 9.0%. This performance was attributed to the company’s effective supply chain management, operational efficiencies, and proactive contract management.
Although the company’s base revenue increased by 12.1% year-on-year, driven by strategic business selection and the scaling of operations, overall revenue declined compared to the previous period.
This was primarily due to a change in its revenue recognition model for certain support services and a voluntary decision in 2023 to exit a contract that did not meet ADNH Catering’s profitability standards.
As a result, resources were redirected towards more profitable areas, with a focus on reducing reliance on large contracts. The company’s catering business, which remains dominant, is now more balanced across sectors as a result of this shift.
Despite the challenges posed by high inflation, ADNH Catering’s strong contract profitability and effective cost management helped offset rising expenses. The company’s ability to mitigate these costs is reflected in its EBITDA margin.
ADNH Catering has introduced a dividend policy tied to its financial performance, with semi-annual cash dividend payments.
For the financial year 2024, the company plans to distribute AED 60 million (US$16.3 million) in cash dividends in April 2025.
For 2025, the dividend payout will increase to AED 180 million (US$49 million), and in 2026, the company intends to raise the annual dividend by at least 5%, demonstrating confidence in its future earnings and cash flow.
Starting in 2027, ADNH Catering plans to continue its progressive dividend policy, with semi-annual distributions linked to its financial results.
Looking ahead, ADNH Catering remains optimistic about its growth prospects, with a growing addressable market offering opportunities to expand its market share.
The company is focused on maintaining high client retention rates of over 95% while strengthening its position in key sectors. Through a disciplined approach to scaling its operations, ADNH Catering aims to achieve annual revenue growth of 5-7% from 2025 onwards, with an EBITDA margin of 13-14% over the same period.
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