Earnings Report

Foodco National Foodstuff

H1 26

1. Company Overview & Earnings Context

Foodco National Foodstuff PJSC is an Abu Dhabi Securities Exchange (ADX)-listed food distribution and logistics company engaged in the import, export and distribution of food and household products, catering and facility management services, freight forwarding, logistics and restaurant management across the UAE. During H1 2026, the Group continued to strengthen its logistics business while navigating a challenging trading environment. Although freight forwarding revenue expanded significantly, lower trading revenue, higher finance costs and operating expenses resulted in another net loss for the period. Management nevertheless stated that the Group remains operationally and financially sound, supported by a strong equity base and the continued financial support of its major shareholder.

2. Financial Performance Snapshot

Revenue: AED 25.00 Million (-8.6% YoY)
Gross Profit: AED 2.38 Million (-9.8% YoY)
Operating Loss: AED 5.51 Million (vs. AED 6.76 Million loss in H1 2025)
Loss Before Tax: AED 7.06 Million (vs. AED 7.03 Million loss in H1 2025)
Net Loss: AED 7.06 Million (vs. AED 7.03 Million loss in H1 2025)
Loss Per Share: AED 0.025 (unchanged YoY)

Compared with H1 2025:

Revenue declined 8.6% to AED 25.00 million.
Gross profit declined 9.8% to AED 2.38 million.
Operating loss improved to AED 5.51 million from AED 6.76 million.
Loss before tax remained broadly unchanged at AED 7.06 million.
Net loss remained broadly unchanged at AED 7.06 million.
Loss per share remained at AED 0.025.

3. Operational Highlights & Key Metrics

Total Assets: AED 277.38 Million
Total Equity: AED 164.48 Million
Property & Equipment: AED 97.38 Million
Cash & Cash Equivalents: AED 10.06 Million
Due from Related Parties: AED 127.31 Million
Bank Borrowings: AED 41.69 Million
Net Cash Generated from Operating Activities: AED 9.65 Million
Freight Forwarding & Logistics Revenue: AED 9.75 Million (+126.7% YoY)

4. Key Performance Drivers

Foodco's H1 2026 performance reflected mixed operating trends. Revenue from the traditional food trading business declined due to lower product sales, while the freight forwarding and logistics segment more than doubled its revenue, partially offsetting the weakness in trading operations. Lower selling and marketing expenses and reduced operating losses improved operating performance, but higher finance costs weighed on bottom-line profitability. The Group also generated positive operating cash flow of AED 9.65 million, supported by improvements in working capital management.

5. Outlook & Forward Guidance

Management stated that the Group continues to operate as a going concern, supported by its net current assets of AED 98.44 million, shareholders' equity of AED 164.48 million and ongoing financial support from its major shareholder. While geopolitical developments created temporary business disruptions during the period, management confirmed there has been no material impact on the Group's operations, liquidity or financial position and will continue monitoring the regional environment.

6. Investor Takeaway

Foodco National Foodstuff continued to face a challenging operating environment during H1 2026, with lower trading revenue resulting in another net loss. However, the Group demonstrated resilience through strong growth in its logistics business, positive operating cash flow, a solid equity position and continued shareholder support, providing a foundation for future operational improvement.