ADNH Catering

1. Company Overview & Earnings Context

ADNH Catering delivered a resilient H1 2026 performance despite a challenging operating environment shaped by regional geopolitical tensions. Revenue reached a record AED 922 million, driven by the acquisition of ADNH Catering KSA and organic growth across existing contracts, while the Group maintained its market-leading position through strong client retention and new contract wins.

Although geopolitical disruptions affected margins and profitability, the Company's diversified business model, operational flexibility, and resilient supply chain enabled it to continue delivering uninterrupted services across its operations.

2. Financial Performance Snapshot

• Revenue: AED 922M (+10.0% YoY)

• EBITDA: AED 106.3M (-8.0% YoY)

• EBITDA margin: 11.5% (vs 13.8%)

• EBIT: AED 69.1M

• Profit before tax: AED 67.1M

• Income tax expense: AED 7.1M

• Net profit: AED 60.4M (-18.0% YoY)

• Net profit margin: 6.6% (vs 8.8%)

Compared with H1 2025:

• Revenue increased from AED 837.9M to AED 921.5M

• EBITDA declined from AED 115.3M to AED 106.3M

• Profit before tax declined from AED 82.4M to AED 67.1M

• Net profit declined from AED 73.7M to AED 60.4M

• EBITDA margin declined from 13.8% to 11.5%

• Net profit margin declined from 8.8% to 6.6%

3. Operational Highlights & Key Metrics

• Total assets: AED 1.29B (+3%)

• Total equity: AED 573M

• Cash & bank balances: AED 174M

• Contract retention rate: 98.9%

• New contracts secured: 39

• Annualised revenue from new contracts: AED 77M

• Catering segment revenue: AED 620M

• Support services revenue: AED 302M

• Catering segment contributed 67% of Group revenue

• Support services contributed 33% of Group revenue

• Revenue contribution from ADNH Catering KSA acquisition: AED 86M

• Net new business growth: AED 12M

• Interim cash dividend proposed: AED 60M (2.66 fils per share)

• Final FY2025 cash dividend of AED 90M was paid during the period.

4. Key Performance Drivers

Revenue growth was driven by the acquisition of ADNH Catering KSA, organic expansion across existing contracts, and strong client retention of 98.9%. The Company also secured 39 new contracts during the period, supporting future revenue growth. However, geopolitical tensions across the region disrupted supply chains, increased operating costs, pressured margins, and affected client activity, leading to lower EBITDA and net profit despite higher revenue. ADNH Catering's diversified contract portfolio, operational flexibility, and procurement capabilities helped mitigate much of the operational impact.

5. Outlook & Forward Guidance

Management remains confident in the resilience of ADNH Catering's business model and expects the Company to return to sector-leading growth once geopolitical conditions stabilize. The Group will continue focusing on contract retention, securing new business, expanding its regional footprint, pursuing value-accretive acquisitions, and maintaining disciplined cash flow management. Management also expects its scale, diversified operations, and strong client relationships to support long-term sustainable growth.

6. Investor Takeaway

ADNH Catering delivered resilient H1 2026 results despite one of the most challenging operating environments in recent years. Record revenue growth, industry-leading client retention, and continued contract wins demonstrate the strength of its diversified catering and support services business. Although geopolitical disruptions weighed on margins and profitability, the Company's strong execution, resilient operations, and continued expansion strategy position it well to benefit as regional conditions normalize and growth accelerates.