Fallout from conflict weighs on ADNH Catering’s 2Q results

ADNH Catering’s net income fell 17.1% y-o-y to AED 29 mn in 2Q 2026, as regional tensions triggered client service suspensions, logistics disruption, and higher materials costs, according to its earnings release (pdf) and management discussion and analysis report (pdf). Revenue still rose 6.9% to AED 457 mn.

On a 1H basis: Revenue grew 10% y-o-y to AED 922 mn, but net income dropped 18.9% to AED 60 mn, with its net margin narrowing to 6.6% from 8.8%. The takeover of ADNH Catering KSA contributed AED 86 mn of revenue — more than the AED 84 mn overall increase — while new business added AED 12 mn. The exit from ZadSource, its specialized food and beverage procurement and supply-chain business, reduced revenue by AED 8 mn; the company did not provide further details on the divestment.

The conflict is also slowing the pipeline: New tender flow weakened and contract awards and mobilizations were delayed, although ADNH Catering secured 19 new contracts during the quarter. It ended 1H with 39 new contracts worth AED 77 mn in annualized revenue and retained 98.9% of existing business. Management expects growth to recover once the conflict eases, provided hostilities in the UAE do not return to March-April levels.

Dividends: The board proposed an AED 60 mn interim payout, equivalent to 2.66 fils per share, for distribution in October, subject to shareholder approval. ADNH Catering had previously outlined plans to distribute 8-8.5 fils per share in both 2026 and 2027 through equal October and April installments, suggesting a larger second installment could follow, although future payouts will remain tied to earnings and banknote generation, the firm said.