ADNH Catering Plans $132.39 Million Growth in Saudi Arabia

Aligning with Saudi Arabia’s economic development and growth of high-potential sectors, such as private healthcare, energy and infrastructure development, ADNH Catering, a leading food and support services provider in the UAE, has drawn a strategic plan to apply its sales and marketing approach in the Kingdom to drive $133.29 million in growth in the next five years.

ADNH Catering took a significant step in its strategic expansion in Saudi Arabia by signing a Sale and Purchase Agreement (SPA) to acquire an additional 20% equity stake in its Saudi Joint Venture (Saudi JV) in December 2024 taking its ownership to 50%, enabling full consolidation of the business upon completion that is expected in Q3 2025.

Building on a decade of partnership and a 17% increase in clients served from 2021 to 2024, the company plans to continue to leverage its expertise and proven track record to expand its operations and capture market share across the Kingdom.

ADNH CEO Clive Cowley said that their acquisition and integration of Food Nation was completed successfully, providing a solid base from which to accelerate growth in the Education Sector. “Regulatory approval for our increased shareholding in the Saudi Arabia business is now expected in Q3 and we are setting the foundation for expansion in the Kingdom by integrating the Saudi team into ADNH’s sales, marketing and retention processes,” he said.

Financial Performance

Revenue for H1 rose by 1.7% y-o-y to $228.15 million, with growth in both catering and in the support services Task+ brand. This growth was achieved despite the decision to downsize the Zadsource GPO business, which had been undergoing market testing since 2023, as it had not delivered the targeted growth and profit margins.

After adjusting for ZadSource growth for H1 was 5.3%. EBITDA was up 7% y-o-y to $31.31 million with an improved EBITDA margin of 13.8% as lower margin business was replaced by higher margin activity.

Net profit improved by $820,000 or 3.5% y-o-y to $20.15 million, underscoring the success of strategic initiatives in operations management information and commercial systems along with the impact of robust supply chain management and operational efficiencies.

In relation to Q2, the Company’s consolidated results record continuing growth in revenue and net income compared to last year. Revenue growth inclusive of of the impact of ZadSource was 1.7% to $116.53 million and after adjusting for the impact of ZadSource, underlying growth would have been 4.8%.

Clive Cowley, while complementing ADNH’s regional and inorganic expansion, said that the company has demonstrated its capacity to secure new business in all segments whilst recording a retention rate of 98.3% retention rate in H1-2025.

“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,” he added.

New Contracts

ADNH Catering secured 19 new contracts in Q2 with a total of 36 in H1, bringing the total number of contracts to 419 as of 30 June 2025. It continues to lead the market with a retention rate of 98.3% in H1, reflecting its ability to both secure new business whilst strengthening client relationships through our retention model and active tender participation.

Management Outlook

Management and the Board have a positive outlook for growth and performance in H2 2025 supported by an expanding addressable market that offers opportunities to gain new business and increase market share. We continue to evaluate inorganic growth opportunities where there is strategic significance and/or benefits of scale to increase shareholder value.