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Catrion to benefit from regional growth
Catrion Holding Catering Company benefits from a strategic location that enables it to capitalize on regional growth, despite a decline in profitability due to recent geopolitical tensions. The forecasts indicate a 6.5% decrease in its profits in 2026, reaching approximately 293 million riyals, along with a 9.7% decline in aircraft catering services revenue in the second quarter of the year. The company's profits are expected to start recovering beginning in 2027, with a compound annual growth rate of 8% projected through 2030, supported by fleet expansion and growth in non-aviation business sectors. The company anticipates that acquisitions, such as Gulf Hospitality, will contribute to increased future revenues. In the short term, the company will face pressures on working capital, but cash flows are expected to improve, and the debt-to-equity ratio is projected to decrease to 0.60 times by 2030.
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