Earnings Report

ADNH Catering

Q1 26

1. Company Overview & Earnings Context

ADNH Catering reported its Q1 2026 results, delivering a resilient performance with strong revenue growth but softer profitability, impacted by margin pressures amid challenging market conditions.

2. Financial Performance Snapshot

Revenue: AED 464.4M (+13% YoY)
EBITDA: AED 53.5M (−10% YoY approx.)
EBITDA margin: 11.5% (vs 14.6% YoY)
Profit before tax: AED 35.1M (−18% YoY approx.)
Net profit: AED 31.4M (−19% YoY)
Net profit margin: 6.8% (vs 9.5% YoY)
Cash conversion: 73% (strong cash generation)

3. Operational Highlights & Key Metrics

Contract retention rate: 99.4% (industry-leading)
New business wins: AED 37M in Q1
Total contracts: 504 as of March 2026
Revenue mix:

Food services: AED 307M
Support services: AED 157M

Dividend: AED 90M final dividend paid

4. Key Performance Drivers

ADNH Catering’s Q1 performance reflects strong top-line growth supported by contract expansion and acquisitions, particularly in food services, as seen in the income statement (page 3).

However, profitability declined due to:

Higher cost of services, reflecting input cost inflation and supply chain pressures
Margin compression, with EBITDA margin falling from 14.6% to 11.5%
Delayed mobilization of new contracts, impacting near-term earnings contribution

Despite these pressures, the business demonstrated resilience through high contract retention (99.4%) and stable service delivery, supported by its diversified contract portfolio.

5. Outlook & Forward Guidance

Management remains confident in the resilience of the business, with expectations to resume stronger growth once current geopolitical disruptions ease.

Key forward factors include:

Recovery in client activity and volumes
Execution of newly secured contracts
Cost normalization and margin recovery
Continued expansion across UAE and regional markets

6. ???? Investor Takeaway

ADNH Catering delivered strong revenue growth with resilient operations, though margins and profits were impacted by cost pressures and delayed contract execution.