A D N H Catering Plc · ADX:ADNHC
A D N H Catering — Q4 2024 Earnings Presentation
32 slides from A D N H Catering's earnings presentation, February 2025
Slide 1: Q4 & FY 2024 Earnings Presentation
Q4 & FY 2024 Earnings Presentation FEBRUARY 2025 Q4 & FY 2024 EARNINGS PRESENTATION
Slide 2: Disclaimer
Disclaimer No statement in this document is intended to be nor may be construed as a profit forecast. Any statements made in this document which could be classed as “forward-looking” are based upon various assumptions, including, management’s examination of historical operating trends, data containe
Slide 3: Note on Pro Forma Financials
Note on Pro Forma Financials We have provided some notes regarding our use of unaudited and unreviewed combined proforma financials in this presentation, and in other investor materials. We believe this approach is the clearest and most informative way of presenting our financials, in consideration
Slide 4: Speakers
Speakers Clive Cowley Anthony Childers Chief Executive Officer Chief Financial Officer Q4 & FY 2024 EARNINGS PRESENTATION 4
Slide 5: Contents
Contents 1 Highlights 2 Business Overview 3 Growth Strategy 4 Financial Performance 5 Concluding Remarks 6 Q&A 7 Appendix Q4 & FY 2024 EARNINGS PRESENTATION 5
Slide 6: Q4 2024 Highlights
Q4 2024 Highlights REVENUE REVENUE (AED) EBITDA (AED) REVENUE CASH CONVERSION 443.1 mn 66.5 mn 76% +12% YoY +22.2% YoY 200 bps YoY TOTAL CONTRACTS TOTAL CLIENTS CONTRACT RETENTION 1 388 283 97% 5.4% vs Dec-23 2.9% vs Dec-23 50 bps vs 2023 Twelve-month performance ahead of expectations, with strong Q
Slide 7: Business Overview
Business Overview Q4 & FY 2024 EARNINGS PRESENTATION 7
Slide 8: Business Overview
Business Overview PROVEN BUSINESS MODEL BUSINESS IN THE UAE SAUDI EXPANSION ADNH Catering’s distinct business segments and operational strengths enable attractive cross-selling opportunities Food Services Support Services DESCRIPTION Catering through on-site kitchens or centralized hubs General clea
Slide 9: Business Overview: Key Strengths
Business Overview PROVEN BUSINESS MODEL BUSINESS IN THE UAE SAUDI EXPANSION Key Strengths Proven track record in Diversified & sectorized Strong and stable financial Strong brand with a market Blue chip and diversified Scaled operation with strong securing major government business with good growth
Slide 10: Business Overview: Saudi Expansion
Business Overview KEY PROVEN BUSINESS MODEL BUSINESS IN THE UAE SAUDI EXPANSION Opportunity to leverage UAE expertise and focus on Kingdom of Saudi Arabia as a priority market Increased equity stake in Saudi Joint Venture to 50% KSA Opportunity No presence in • Entered into SPA; shareholding to beco
Slide 11: Growth Strategy
Growth Strategy Q4 & FY 2024 EARNINGS PRESENTATION 11
Slide 12: Positioned to Benefit From Multiple Growth Avenues
Positioned to Benefit From Multiple Growth Avenues Sales and Segment Specific Horizontal Inorganic KSA Retention Strategy Integration Growth Opportunity • New business and sales through high • Diversification towards private • Retail: HUSK is expanding, with 25 • Acquisition focus: • Increased equit
Slide 13: Financial Performance
Financial Performance Q4 & FY 2024 EARNINGS PRESENTATION 13
Slide 14: Company Reorganisation Explained
Company Reorganisation Explained Pre-IPO Today ADNH ADNH Catering plc 100% 100% 100% 100% 30% ADNH Catering Abu Dhabi ADNH Catering Abu Dhabi ADNH Catering Dubai ADNH Catering Sharjah Compass Arabia 100% Reorganisation using Business Combination method under Common Control. ADNH Catering’s combined
Slide 15: Well-Diversified Revenues
Well-Diversified Revenues CATERING SERVICES: REVENUE BY KEY REVENUE BY SEGMENT (AED m) SECTOR (AED m) • Q4 revenue growth of 12.0% YoY Catering as % of Revenue • Driven by new contract wins in the quarter across segments Education 62% 65% 59% 63% 1013 1041 in UAE Correctional • Revenue decrease over
Slide 16: Maintaining Strong Margins
Maintaining Strong Margins CONTRACT PROFIT (AED m) UNDERLYING EBITDA (AED m) (2) • Strong 18.6% contract profit margin, with support Services Contract Profit Margin EBITDA Margin margin excluding ZadSource at c.10% 17.3% 18.2% 18.2% 18.6% 13.7% 15.0% 14.0% 14.0% • Stable base of contract profitabili
Slide 17: Sustained Profitability, Investing in High-Margin Contracts
Sustained Profitability, Investing in High-Margin Contracts CASH CONVERSION (1) UNDERLYING EBIT (3) & NET PROFIT • High cash conversion, supported by attractive long-term Total Investment as % Rev. (2) EBIT Margin contracts -3.0% -3.3% 10.4% 11.1% 10.8% 10.2%(5) • Capex light investment model tailor
Slide 18: Robust Cash Conversion
Robust Cash Conversion FREE CASH FLOW (FCF) COMMENTARY • Reduction in cash conversion due to increased (AED m) 2023 2024 investment to secure key contract extension. Strategic intent to invest more to secure Underlying EBITDA 239 233 attractive longer-term contracts. (-) Net Capex(1) (7) (15) • Aver
Slide 19: Attractive Dividend Profile
Attractive Dividend Profile Progressive Intention to For 2025, For 2026, From 2027 dividend policy distribute a intention to intention to onwards, with semi- special cash distribute (semi- increase the intention to annual cash dividend of AED annually) a total annual dividend maintain a dividend 60
Slide 20: Financial Guidance
Financial Guidance GUIDANCE ( 1 ) ON ORGANIC GROWTH BASIS NEAR-TERM TARGET ( 2 ) MID-TERM TARGET ( 2 ) COMMENTARY 8-10% of total revenue per annum Expect to be driven by increasing size of the addressable market and increasing market share New Contract Wins (annualised value of new business) of ADNH
Slide 21: Concluding Remarks
Concluding Remarks Q4 & FY 2024 EARNINGS PRESENTATION 21
Slide 22: Concluding Remarks
Concluding Remarks Robust Diverse portfolio Saudi Strong FY & Q4 Clear market Attractive underlying with long-term expansion performance leadership dividend profile performance contracts plan Twelve-month Leading food and Delivering robust Diversified client Attractive and Clear business strategy pe
Slide 23: Q&A
Q&A Q4 & FY 2024 EARNINGS PRESENTATION 23
Slide 24: Appendix
Appendix Q4 & FY 2024 EARNINGS PRESENTATION 24
Slide 25: Investment Highlights
Investment Highlights Large & growing Market Diverse Strategically located target market leader portfolio supported by strong macro market with significant regional presence and a of strategic clients with competitive edge central production facilities with clear tailwinds diversified and sectorised
Slide 26: Proforma Combined Income Statement, 3 months to 31 December
Unaudited unreviewed Proforma Combined Income Statement for the 3-month period ending 31 December Please refer to slide 3 ‘Note on pro forma financials’ for an explanation regarding the basis of preparation for the followin g slides. Unaudited unreviewed Proforma Combined Income Statement for the 3-
Slide 27: Proforma Combined Cash Flow Statement, 3 months to 31 December
Unaudited unreviewed Proforma Combined Cash Flow Statement for the 3-month period ending 31 December AED (FYE 31-Dec) Q4-2024 Q4-2023 Cash flow from operations EBITDA 66,466,565 54,386,435 Charge of specific provision / reversal - - Provisions 6,493,645 4,519,424 Employees end of services benefits p
Slide 28: Proforma Combined Income Statement, 12 months to 31 December
Unaudited unreviewed Proforma Combined Income Statement for the 12-month period ending 31 December Unaudited and unreviewed proforma financial accounts for the 12-month period ending 31st December: 2024 2023 AED (FYE 31-Dec) (Un-audited unreviewed) (Un-audited unreviewed) Food services 1,040,712,452
Slide 29: Proforma Combined Cash Flow Statement, 12 months to 31 December
Unaudited unreviewed Proforma Combined Cash Flow Statement for the 12-month period ending 31 December AED (FYE 31-Dec) 2024 2023 Cash flow from operations EBITDA 233,447,039 239,474,985 Charge of specific provision / reversal - 25,210,000 Provisions 21,167,363 24,455,244 Employees end of services be
Slide 30: Statutory condensed consolidated statement of profit or loss
Statutory condensed consolidated statement of profit or loss – 31 December 2024 Consolidated statement of Profit or loss: 15 months to December 2024 12 months to September 2023 AED (Audited) (Audited) Food services 1,177,470,723 874,867,984 Support services 714,751,270 513,924,216 Revenue 1,892,221,
Slide 31: Statutory condensed consolidated statement of cash flow
Statutory condensed consolidated statement of cash flow – 31 December 2024 AED 2024 2023 Cash flow from operations Profit for the period before tax 200,770,778 211,435,726 Adjustments for: Depreciation on PPE 18,088,497 8,165,846 Depreciation on ROU 45,203,209 31,468,505 Amortisation 7,624,397 72,80
Slide 32: Thank You
THANK YOU Q4 & FY 2024 EARNINGS PRESENTATION 32