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Zawya
12-02-2025
- Business
- Zawya
UAE: ADNH Catering delivers Q4 revenue growth of 12%
ADNH Catering, a leading food and support services provider in the UAE, has reported strong financial performance in Q4 2024, driven by healthy growth in new contracts and the retention of key existing clients and margin improvements. Revenue for the fourth quarter of 2024 grew 12% to AED443 million ($120.61 million). EBITDA was up 22.2% year-on-year to AED66.5 million with an improved EBITDA margin of 15%. Net profit improved by 20% to AED44 million, demonstrating the positive impact of ADNH Catering's robust supply chain management, operational efficiencies and proactive contract management. Pro forma revenue for the 12 months ended 31 December 2024 was AED1.7 billion. On an adjusted like-for-like basis, excluding the one-off negative impact of the company's decision in 2023 to de-risk its portfolio by exiting the unprofitable contracts and the change in its revenue recognition model for part of its support services business, full-year pro forma revenue improved 12.9% against 2023 (whereas on an unadjusted basis it declined by 2.6%). Pro forma net profit for the 12-month period was AED153.6 million improving by 1% when adjusted for the impacts stated above, and declining by 25.6% on an unadjusted basis. Clive Cowley, CEO of ADNH Catering, said: 'Our strong performance in both the full-year and fourth quarter reflect the continued execution of the growth strategy we set out during our IPO. Our expansion in Saudi Arabia by increasing our stake in our joint venture will allow us to grow our operations across business segments and provinces in the kingdom. "Complimenting this regional expansion, we are proving our capacity to continuously secure new contracts while maintaining a retention rate of over 97%, underscoring our market-leading position and our ability to deliver on our commitments and capitalise on market opportunities. These achievements highlight the strength of our business model and the commitment of our entire team to creating long-term value for our stakeholders. We remain focused on driving sustainable growth by not only expanding our footprint but also growing within key sectors, ensuring that we continue to meet the evolving needs of our clients and reinforce our regional leadership," Cowley said. Growth drivers ADNH Catering secured 14 new contracts in Q4 and 61 new contracts over the past 12 months, bringing the total number of contracts to 388 in 2024. As of 31 December 2024, the company served a total of 283 clients. The company maintained an industry-leading average retention rate of over 97% during the year, underscoring its focus on securing new business while strengthening key client relationships through active tender participation, it said. In December 2024, ADNH Catering advanced its strategic expansion in Saudi Arabia by signing a sale and purchase agreement to acquire an additional 20% equity stake in its Saudi Joint Venture (Saudi JV), increasing its ownership to 50%. Upon completion, expected in H1 2025, the business will be consolidated into ADNH company has a strategic plan to drive SAR500 million in growth for its Saudi JV over the next 3-5 years in alignment with its vision to leverage opportunities in the Saudi market. Saudi Arabia's economic development and growth of high-potential sectors, such as private healthcare and energy remain key pillars of the Company's strategy. Building on a decade of partnership and a 17% increase in clients served from 2021 to 2023, ADNH Catering plans to continue to leverage its expertise and proven track record to expand its operations and capture market share across the kingdom, the company said. As part of its strategy to pursue horizontal integration and adjacent expansion, ADNH Catering continues to make significant progress with 'Husk', its coffee and grab-and-go brand. By the end of H1 2025, 25 outlets are expected to be operational across the UAE, with an additional 25 locations set to open in H2 2025. This expansion reflects ADNH Catering's commitment to diversifying its offering and enhancing customer convenience, it said. In a post-period event in January 2025, ADNH Catering continued to pursue inorganic growth through targeted bolt-on acquisitions, announcing the all-cash acquisition of 100% of the share capital of Food Nation Catering Services, a chef-driven school catering business in the UAE that currently feeds more than 70,000 students across three emirates. The transaction is in line with the company's strategy to broaden its service offering and expand into high-potential sectors such as education. The company's stable base of contract profitability continued to see higher costs mitigated by effective supply chain management, operational efficiencies and growth in new contracts. Management outlook Management and the board have a positive outlook for growth in 2025, supported by an expanding addressable market that offers significant opportunity to win new business and increase market share and inorganic growth. The company's full-year performance exceeded expectations, with a particularly strong Q4 driven by growth in new contracts, retention of existing contracts, and margin improvements, with sustained momentum carrying into 2025. Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
Trade Arabia
29-01-2025
- Business
- Trade Arabia
Emirates NBD achieves $6.26bn profit for 2024
Emirates NBD's profit before tax climbed to a record AED27.1 billion ($7.38 billion) in 2024, a 15% increase compared to 2023 figures, as it expanded its regional presence and enhanced its wealth management franchise. The group recorded a net profit after tax of AED23 billion ($6.26 billion), up 7% on 2023 numbers. Income grew to over AED44 billion in 2024, a 3 per cent growth year-on-year, with the group's strategic investment in digital banking and branch network, generating significant new revenue streams, said the bank. All business units achieved an outstanding performance with AED160 billion ($43.56 billion) in new loans provided to customers, driving assets up an excellent 16% as it maintained a one-third market share of UAE credit cards. Emirates NBD Capital, the number one investment bank for UAE IPOs, generated its highest ever revenue, during its busiest year for transactions. Emirates Islamic delivered a record profit of AED2.8 billion, firmly establishing itself as an Islamic banking powerhouse in the UAE. In light of the group's excellent performance, the Board of Directors is proposing a 100 fils dividend. Other key highlights • 10% loan growth in 2024, with AED88 billion of new corporate lending on optimisation of regional network and 30% increase in retail lending as priority and private banking franchise grows rapidly • Deposit mix is a key strength, growing AED82 billion in 2024, including a AED48 billion increase in Current & Savings Accounts (CASA) • Impairment charge of AED0.1 billion with zero cost of risk, a record low, on strong recoveries • Impaired loan ratio improved to 3.3% as clients benefit from a buoyant economy • Emirates Islamic's AED2.8 billion record profit driven by exceptional 31% customer financing growth in 2024 • Earnings per share up significantly by 7% to 356 fils in 2024 • Assets Under Management across the Group now exceed $44 billion, reflecting ongoing success of our wealth management strategy • KSA network expanded to 21 branches and 62 ATMs, driving an impressive 57% loan growth in 2024 Sheikh Ahmed Bin Saeed Al Maktoum, Chairman, Emirates NBD, said: 'Emirates NBD's profit before tax climbed to a record AED27.1 billion in 2024 as the Group optimises its regional corporate presence and expands its Wealth Management, Priority and Private banking franchise. 'We are delighted with our incredible 57% loan growth in the Kingdom of Saudi Arabia in 2024, driven by our expanded network of 21 branches and 62 dedicated ATMs. Our international expansion story is one of growth, diversification and resilience, leveraging our unique proposition to expand our footprint across the MENAT region and beyond,' he said. Dubai's GDP is projected to grow 5% in 2025, driven by expansion in key sectors including infrastructure, transport, hospitality and logistics, and Emirates NBD stands ready to continue driving UAE and regional growth, said Sheikh Ahmed.. Hesham Abdulla Al Qassim, Vice Chairman and Managing Director, said: 'Income grew to over AED44 billion in 2024 as the group's strategic investment in digital banking and regional expansion generates new revenue streams. 98% of customers are now onboarded digitally, with Private and Priority Banking offering a market-leading product range to a growing affluent population. 'All business units achieved an outstanding performance with record retail lending, a one-third market share of UAE credit card spend and corporate originating AED88 billion of gross new loans, two-thirds of which is to the private sector, as it leverages the group's regional presence,' he said. Shayne Nelson, Group Chief Executive Officer, said: 'Emirates NBD's record income and profit is a direct benefit of successfully harnessing key growth areas, including Private Banking, Wealth Management, Escrow, regional Corporate growth and Investment Banking. 'Our enhanced Digital Wealth platform propelled Assets Under Management beyond $44 billion, with digital wealth transactions up ninefold in 2024. 'Emirates NBD has the highest number of LEED Platinum certified branches of any bank globally and is recognised as the leading bank in the region for sustainable solutions,' he said. 'We are employing Generative AI to identify trade opportunities, expand merchant acquiring prospects through data mining and screen transactions using machine-learning based alerts. Emirates NBD's investment in digital and expanded network positions it perfectly to benefit from a buoyant regional economy,' he added. – TradeArabia News Service
