Spinneys followed its recent listing on the Dubai Financial Market (DFM) with its first-ever quarterly result as a publicly listed company.
One of the UAE’s leading fresh food retailers, Spinneys reported 10.9 percent growth in revenue to AED815 million ($221.9 million) for the first quarter of 2024 compared to AED735 million ($200.14 million) the same quarter last year.
Gross profit was up 15.1 percent to AED336 million ($91.5 million) from AED292 million ($79.5 million) and adjusted EBITDA was up 8.7 percent to AED151 million ($41.1 million).
Gross profit margins were robust, due to the group’s efficient sourcing and supply chain capabilities, alongside its successful private label strategy. It reached 41.2 percent in Q1 2024, a 150-basis point improvement versus the prior year.
Adjusted EBITDA margin of 18.5 percent was impacted by one-off IPO-related costs of approximately AED10 million and pre-store opening expenses in Saudi Arabia. Profit for the period increased by 12.8 percent YoY to AED75 million, with a net profit margin of 9.2 percent, roughly 20 basis point improvement from the prior year.
Sunil Kumar, Chief Executive Officer, was delighted with the result and said things will only get better for Spinneys as the company makes its debut in Saudi Arabia with its launch in Riyadh in the first half of 2024.
Kumar commented: “We are very pleased with our strong start to 2024, a year which will be Spinneys’ first as a listed company. Our performance in the first quarter underscores the strength of our business model and has been enabled by our relentless pursuit of growth. This provides us with a solid foundation to maintain our already strong momentum through the coming periods.
“With our entry into the highly-attractive Saudi market set to take place in the current quarter, we look forward to continue delivering exceptional value to our customers, achieving sustainable growth and creating long-term shareholder value.”
Online sales grow
The first quarter saw a 9.5 percent increase in the number of transactions to 802,000 in Q1 2024 and average basket size grew by 1 percent YoY. E-commerce sales increased by 26.8 percent, surpassing AED110 million ($29.95 million) for the period.
Spinneys recently completed the soft launch of its ‘Spinneys Swift’ app to offer a hyperlocal delivery service to customers.
Apart from La Strada, the new store in Riyadh, Spinneys also plans to open three new stores expected to open during the year in the UAE.
Established in 1961, Spinneys has 75 stores (64 owned and 11 under management, including Waitrose) across the UAE and Oman.
Follow us on
