Saudi catering firm signs $2.4bn deal with Red Sea Global

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Saudi Airlines Catering Company (SACC) has signed two contracts worth SAR9 billion ($2.4 billion) with Red Sea Global, the developer of Red Sea and Amaala mega projects.

The first contract, valued at SAR6.3 billion, is to design, build, operate and transfer a central production unit for catering and facilities management to service RSG hotels, resorts and other facilities within its mega destinations.

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The second, worth SAR2.7 billion, is to design, build, operate and transfer a central laundry for hotels, resorts and other facilities within the Red Sea Global destinations.

The two Red Sea Global contracts will be valid for 20 years, SACC said in two separate statements to the Saudi Tadawul stock exchange.

SACC reported a 62 percent year-on-year rise in first-quarter profit to SAR57.1 million, as a result of improved sales from inflight, remote sites and railways catering services.

In its 2022 board report, chief financial officer Hesham Masoud said that revenue reached SAR1.82 billion in 2022, an increase of 49.9 percent year on year.

The underlying operating profit of SAR283.9 million was 370.5 percent higher than in 2021, despite mobilisation costs associated with higher new business growth, he added.

“SACC has emerged from the pandemic as a stronger and more resilient business, reflecting our clear strategy and market-leading growth enablers,” Masoud stated.