Spinneys, one of the UAE’s premier fresh food retailers, announced on Thursday that its first-half revenues hit a new peak of Dh1.6 billion, marking a 9.9 percent increase from the previous year. Despite the challenges posed by the newly implemented UAE corporate tax and one-off expenses related to the company’s recent IPO, profits rose by 15.2 percent to Dh146 million. In a disclosure to the Dubai Financial Market, Spinneys revealed plans to distribute its inaugural post-IPO interim dividend of Dh102.6 million, equivalent to 2.85 fils per share, representing 70 percent of distributable profits, this month.
The company’s revenue surged by 9.9 percent year-on-year to Dh1.6 billion in the first half of 2024, fueled by a 9.8 percent growth in like-for-like sales and the addition of four new stores in strategic locations including Al Khawaneej and Sobha in Dubai, The Kitchen by Spinneys in Dubai Mall, and Spinneys’ debut store in Riyadh, following a store opening at Damac Ventura in Dubai in the latter half of 2023. Gross profit escalated by 12.3 percent to Dh659 million by June 30, 2024, with a gross profit margin of 41.3 percent, a 90 basis point enhancement over the previous year, attributed to the company’s efficient sourcing and premium offerings.
Adjusted Ebitda reached Dh304 million, a 9.4 percent increase year-on-year, maintaining an adjusted Ebitda margin of 19 percent, despite one-off IPO costs and pre-store opening expenses in Saudi Arabia. Profit before tax soared by 27.1 percent to Dh163 million, while net profit rose by 15.2 percent to Dh146 million, reflecting a net profit margin of 9.2 percent, a 50 basis point improvement. Transaction growth rose by nine percent to 18.3 million, with average basket size increasing marginally by 0.6 percent, supported by strong customer demand.
Spinneys expanded its retail footprint by opening four new stores in the first half of 2024, contributing to a 7.9 percent increase in gross selling area, bringing the total store count to 79 as of June 30, 2024. The company remains dedicated to further expansion, with plans to open new locations in the UAE and Saudi Arabia, following the successful launch of Spinneys at Riyadh’s La Strada Yard. The Kitchen by Spinneys introduced its first foodhall concept in Dubai Mall during the second quarter, with plans for additional locations in the UAE.
Ecommerce sales grew by 21.7 percent to exceed Dh217 million, accounting for 13.6 percent of total revenue. Spinneys is enhancing its digital retail capabilities with the recent update of its app, introducing the Spinneys Swift hyperlocal delivery option, and successfully piloting a 60-minute delivery service in key locations across the UAE. Sunil Kumar, CEO of Spinneys, expressed delight at the record revenues for H1 2024 and highlighted the company’s commitment to innovation and growth, as evidenced by the recent app upgrade and strategic store openings.
