Latest news with #CliveCowley
Zawya
24-02-2025
- Business
- Zawya
ADNH Catering plans further Saudi growth after Food Nation acquisition
Abu Dhabi-listed ADNH Catering (ADNHC) will expand further into Saudi Arabia after its recent acquisition of Food Nation Catering. The transaction, which is close to completion, allows ADNHC, which is a unit of Abu Dhabi National Hotels (ADNH), to expand further into the school food segment its CEO Clive Cowley said. The company will utilise Food Nation's expertise to grow in that area including in Saudi Arabia. Within three to five years, the school catering segment could bring in AED 250 million revenue, Cowley told Zawya. The addressable market for ADNHC in the UAE is AED 4 billion according to studies commissioned by the company. It expects a CAGR of 5% for the next five years across the business. Analysts said ADNHC has a ' promising ' outlook due to population and tourism growth in Abu Dhabi. While 70% of ADNHC's business is still focused on Abu Dhabi and the country's western region, there is further opportunity to grow in Dubai and the Northern Emirates, Cowley said. A shift to 60% of the business being in Abu Dhabi and 40% elsewhere is likely within 18 months. 'We are very much a broader based business in the UAE now, and our portfolio represents a more diverse contract base,' he said. ADNHC raised AED 864 million ($235 million) when it listed in Abu Dhabi last year and operates in private and public sectors, providing catering in healthcare, education and the defence sector. Other segments are dining services in workplaces including offices, factories and oil rigs as well as police and correctional facilities. It also provides support services such as cleaning, manpower supply and pest control, which already accounts for annual revenue of AED 500 million. Revenue rose 12% to AED 443 million in the fourth quarter of 2024 and profit grew to AED 44 million according to recent financial results. ADHNC expanded into Saudi Arabia and acquired a controlling stake in its joint venture Compass Arabia last year, with the healthcare sector seen as a 'high growth' opportunity in addition to education, Cowley said. Cowley described ADHNC as profitable, cash generative and light on capital expenditure in real terms with a positive cash outlook. The company is not keen on debt equity at this moment for expansion, Cowley said. 'We have already established a revolving credit facility for AED 250 million for any acquisitions going forward. 'We are in a position where we are able to fund our growth in the near-term with the facilities we already have available to us,' he added. (Reporting by Imogen Lillywhite; editing by Seban Scaria)
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. (
Zawya
29-01-2025
- Business
- Zawya
ADNH Catering announces acquisition of Food Nation Catering Services, accelerating growth in education sector
ADNH Catering accelerates its growth in the education catering sector by acquiring 100% of the share capital of Food Nation Catering Services LLC, further enhancing its ability to deliver high-quality, tailored catering services to schools and educational institutions Abu Dhabi, UAE – ADNH Catering plc ('ADNH Catering' or the 'Group'), a leading food and support services group in the UAE and the GCC, announces the acquisition of 100% of the share capital of Food Nation Catering Services LLC ('Food Nation Catering Services'), a chef-driven school catering business in the UAE. The acquisition supports ADNH Catering's strategic objective of deepening its penetration of the education sector. With a track record of almost a decade in the UAE, Food Nation Catering Services currently caters to over 70,000 students across three Emirates, including in the Western Region of Abu Dhabi, and is staffed by over 300 experienced professionals. The full acquisition of Food Nation Catering Services adds further expertise and scale to ADNH Catering, enhancing its capacity to grow in the education sector. Clive Cowley, Chief Executive Officer of ADNH Catering, said: "The acquisition of Food Nation Catering Services is another important milestone in our journey to becoming the partner of choice for catering services in the regional education sector. Food Nation brings valuable expertise and a proven history of delivering tailored catering solutions at scale. With their extensive experience in serving educational institutions, we are excited to leverage their capabilities and further accelerate our growth in this growing sector, strengthening our ability to meet the evolving needs of schools and students in the UAE. This transaction aligns with our broader strategy to expand our presence in high growth industries, demonstrating our commitment to sustainable growth through strategic acquisitions." Having recently announced that it will acquire the controlling stake in its Saudi Joint Venture, ADNH Catering's second acquisition in as many months demonstrates the proactive approach it is taking to the pursuit of strategic bolt-on acquisitions. The transaction aligns with the Company's wider vision to expand its portfolio and explore new opportunities to enhance its offerings and capabilities across in target sectors. The completion of the transaction is expected in Q1 2025, with both parties already collaboratively working towards the seamless integration of their operations. About ADNH Catering Group ADNH Catering Group has a strong heritage in the UAE, built on over 45 years of experience in the food and support services industry. The Group offers a comprehensive range of services, including food preparation and service, as well as support services including general (non-technical) cleaning, housekeeping, pest control, and procurement services. With a significant market presence in the UAE and operations extending to the Kingdom of Saudi Arabia, ADNH Catering Group has earned a reputation for excellence. Investor Enquiries ADNH Catering Group Usman Saeed, Head of Investor Relations E: Media Enquiries Teneo Farah Mouallem, Vice President E: ADNHC@
Zawya
29-01-2025
- Business
- Zawya
Abu Dhabi National Hotels unit acquires Food Nation Catering
Abu Dhabi National Hotels' subsidiary, ADNH Catering, has acquired 100% of the share capital of Food Nation Catering Services, as part of efforts to boost revenues in high-growth sectors. The new investment marks the second acquisition of the hospitality group's catering business in just a few months. The firm debuted on the Abu Dhabi Securities Exchange (ADX) in October after an initial public offering (IPO) that raised AED 864 million ($235 million). 'This transaction aligns with our broader strategy to expand our presence in high-growth industries,' said Clive Cowley, CEO of ADNH Catering. Food Nation, which has more than 300 staff in its payroll, is a school catering business that serves more than 70,000 students in the UAE. The acquisition is scheduled for completion in the first quarter of the year, with both parties already working towards a 'seamless integration' of operations. Last December, ADNH Catering signed a deal to acquire the stake held by Compass Group International in their joint venture operations in the UAE, ADNH Compass. (Writing by Cleofe Maceda; editing by Seban Scaria)
