ADNH Catering Reports AED 1.2 Billion Revenue For First Nine Months Of 2024

ADNH Catering plc has released its financial results for the three-month and nine-month periods ending 30th September 2024. The company reported a revenue of AED1.2 billion for the first nine months, with an EBITDA of AED167 million, reflecting an EBITDA margin of 13.7%. The pro forma net profit stood at AED110 million, showcasing a strong net profit margin of 9.0%.

The company's efficient supply chain management and proactive contract handling contributed to these results. Clive Cowley, CEO of ADNH Catering, stated, "We are pleased to report our first set of results since listing on ADX, with a solid revenue base, sound EBITDA margins and robust free cash flow for the nine months ended September 2024."

During this period, ADNH Catering experienced significant growth in contracts, especially within its support services segment. This growth highlights the company's dedication to strategic expansion across key verticals and regions. The company has also implemented a dividend policy aligned with its financial performance.

For the financial year 2024, ADNH Catering plans to distribute a cash dividend of AED60 million in April 2025. In 2025, the company aims to pay a total cash dividend of AED180 million. By 2026, ADNH Catering intends to increase its annual dividend by at least 5% over the previous year.

The management and Board's confidence in future earnings and cash flow generation is evident through their progressive dividend policy. From 2027 onwards, ADNH Catering plans to maintain this approach with semi-annual cash dividend distributions linked to financial performance.

ADNH Catering is optimistic about its growth prospects due to an expanding addressable market that presents opportunities for increased market share. The company focuses on maintaining high client retention rates above 95% in the near- and medium-term as it strengthens its position in key sectors.

Revenue Growth Targets

With a disciplined approach to scaling operations, ADNH Catering aims for annual revenue growth of 5-7% from 2025 onwards over the near- and medium-term. The company also targets achieving an EBITDA margin between 13-14% during these periods.

This strategic focus on operational efficiency and market expansion positions ADNH Catering well for sustained growth and profitability in the coming years.

With inputs from WAM