A D N H Catering Plc · ADX:ADNHC
A D N H Catering — Q1 2025 Earnings Presentation
29 slides from A D N H Catering's earnings presentation, May 2025
Slide 1: Q1 2025 Earnings Presentation
Q1 2025 Earnings Presentation MAY 2025 Q1 2025 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 Q1 2025 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 Q1 2025 EARNINGS PRESENTATION 5
Slide 6: Q1 2025 Highlights
Q1 2025 Highlights REVENUE REVENUE (AED) EBITDA (AED) REVENUE CASH CONVERSION 410 mn 60 mn 78% +1.7% YoY +11.1% YoY +8% vs Q1-24 TOTAL CONTRACTS TOTAL CLIENTS CONTRACT RETENTION 1 404 295 99% 4.1% vs Dec-24 4.2% vs Dec-24 4% vs guidance ADNH Catering has reported strong performance in Q1-25 driven b
Slide 7: Business Overview
Business Overview Q1 2025 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
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
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 • Entered into SPA; shareholding to become 50%, with Al
Slide 11: Growth Strategy
Growth Strategy Q1 2025 EARNINGS PRESENTATION 11
Slide 12: Driving Growth From Multiple Avenues
Driving Growth From Multiple Avenues Enhancing Sales Delivering Segment Horizontal Solutions Exploring Inorganic Unlocking the KSA and Retention Specific Strategy for the Business Growth Opportunity • Achieving new business wins • Diversification towards private • RETAIL: HUSK is expanding, with 25
Slide 13: Financial Performance
Financial Performance Q1 2025 EARNINGS PRESENTATION 13
Slide 14: Growing Well Diversified Revenues
Growing Well Diversified Revenues CATERING SERVICES: REVENUE BY KEY REVENUE BY SEGMENT (AED m) SECTOR (AED m) • Q1-25 revenue growth of 1.7% YoY, good growth in catering and Catering as % of Revenue support services offset by phased withdrawal from ZadSource Education business. 61% 62% Correctional
Slide 15: Maintaining Strong Margins
Maintaining Strong Margins CONTRACT PROFIT (2) (AED m) UNDERLYING EBITDA (AED m) • Strong 19.6% contract profit margin, ahead of expectations as a Contract Profit Margin EBITDA Margin result of strong operational management and one-off events in 19.6% 17.9% 13.3% 14.6% Catering and one-off Eid relat
Slide 16: 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 (1) -3.7% -3.3% 10.2% 10.7% • Capex light investment model tailored to clien
Slide 17: Robust Cash Conversion
Robust Cash Conversion FREE CASH FLOW (FCF) COMMENTARY • Reduction in cash conversion due to increased (AED m) Q1-2024 Q1-2025 investment to secure key contract extension. Strategic intent to invest more to secure EBITDA 50 60 attractive longer-term contracts (-) Net Capex (1) (4) (4) • Average DSO(
Slide 18: Attractive Dividend Profile
Attractive Dividend Profile Progressive Cash dividend For 2025, For 2026, From 2027 dividend policy approved by intention to intention to onwards, with semi- AGM for AED 60 distribute (semi- increase the intention to annual cash million, for FY annually) a total annual dividend maintain a dividend 2
Slide 19: Financial Guidance
Financial Guidance GUIDANCE ( 1 ) ON ORGANIC GROWTH BASIS NEAR-TERM TARGET ( 2 ) MID-TERM TARGET ( 2 ) Q1 COMMENTARY 8-10% of total revenue per annum Expect to be driven by increasing size of the addressable New Contract Wins (annualised value of new business) 10% market and increasing market share
Slide 20: Concluding Remarks
Concluding Remarks Q1 2025 EARNINGS PRESENTATION 20
Slide 21: Concluding Remarks
Concluding Remarks Robust Diverse portfolio Saudi Q1-25 Clear market Attractive underlying with long-term expansion performance leadership dividend profile performance contracts plan Q1 performance Leading food and Delivering robust Diversified client Attractive and Clear business strategy ahead of
Slide 22: Q&A
Q&A Q1 2025 EARNINGS PRESENTATION 22
Slide 23: Appendix
Appendix Q1 2025 EARNINGS PRESENTATION 23
Slide 24: Company Reorganisation Overview
Company Reorganisation Overview Pre-IPO Today ADNH ADNH Catering plc 100% 100% 100% 100% 30% ADNH Catering Abu ADNH Catering ADNH Catering Abu Dhabi ADNH Catering Dubai Compass Arabia Dhabi Sharjah 100% Reorganisation using Business Combination method under Common Control. ADNH Catering’s combined c
Slide 25: Unaudited Unreviewed Proforma Combined Income Statement
Unaudited unreviewed Proforma Combined Income Statement for the 3-month period ending 31 March 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-mon
Slide 26: Statutory condensed consolidated statement of profit or loss – 31 March 2025
Statutory condensed consolidated statement of profit or loss – 31 March 2025 Consolidated statement of Profit or loss: 3 months to March 2025 3 months to March 2024 in AED (Reviewed) (unaudited and not reviewed) Food services 252,519,702 192,321,554 Support services 157,590,711 125,786,641 Revenue 4
Slide 27: Statutory condensed consolidated statement of cash flow
Statutory condensed consolidated statement of cash flow for 3 months to 31 March Mar-25 Mar-24 in AED (Reviewed) (Unaudited and not reviewed) Cash flow from operations Profit for the period before tax 43,029,414 41,306,897 Adjustments for: Depreciation on PPE 4,070,983 4,871,019 Depreciation on ROU
Slide 28: Statutory condensed consolidated statement of financial position – 31 March 2025
Statutory condensed consolidated statement of financial position – 31 March 2025 in AED Mar-25 Dec-24 Assets Property and equipment 17,594,784 16,702,679 Right-of-use assets 57,150,911 60,595,550 Intangible assets 284,907,320 280,732,728 Investments in joint ventures 11,266,771 10,910,760 Total non-
Slide 29: Thank You
THANK YOU Q1 2025 EARNINGS PRESENTATION 29