Abu Dhabi National Hotels (ADNH) reports 41% revenue growth to US$468M despite net profit drop in H1 2025

UAE – Abu Dhabi National Hotels (ADNH) has achieved a substantial 41% increase in revenues from contracts with customers, reaching AED 1.72 billion (US$468 million) in the first half (H1) of 2025.

However, despite this strong top-line growth, the company’s net profits sharply declined to AED 278.46 million (US$75.75 million) compared to AED 1.15 billion (US$312.14 million) in the corresponding period of 2024.

This marked contrast highlights the challenging environment faced by ADNH during this period.

The company’s financial results reveal that basic and diluted earnings per share (EPS) attributable to ordinary shareholders dropped significantly to AED 0.02 (US$0.0054) in H1 2025, down from AED 0.09 (US$0.0245) in the first half of 2024.

The decline in EPS reflects pressures on profitability amid rising expenses or other operational costs, despite the revenue growth.

Breaking down the quarterly results, ADNH’s net profits for the second quarter (Q2) of 2025 slipped to AED 122.06 million (US$33.21 million) from AED 129.42 million (US$35.17 million) in Q2 2024.

Revenues increased to AED 845.79 million (US$230.08 million) in Q2 2025, up from AED 772.13 million (US$209.94 million) during the same quarter last year. Earnings per share, however, remained stable at AED 0.01 (US$0.0027) in both periods.

In the first quarter (Q1) of 2025, ADNH posted net profits of AED 156.40 million (US$42.53 million), a sharp fall from AED 1.02 billion (US$276.69 million) reported in Q1 2024.

This significant drop early in the year suggests that the company faced headwinds that affected profitability more acutely during the initial months.

Khalid Anib, CEO of Abu Dhabi National Hotels, expressed cautious optimism despite the fluctuations in profitability.

He stated, “With the successful integration of recent acquisitions and the growing demand for both hospitality and catering, we are well-positioned to sustain our momentum throughout the year.”

His comments underscore confidence in the company’s growth strategy and pipeline amid evolving market dynamics.

Although ADNH’s profit levels decreased notably, the 41% surge in revenue indicates increased contract wins and a growing customer base, showcasing overall business expansion.

The company continues to focus on cost management, operational efficiency, and the integration of recent acquisitions to gradually restore stronger earnings.

Going forward, ADNH aims to leverage market demand, enhance service offerings, and optimize its portfolio to improve margins and shareholder returns in the remaining months of 2025.

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