Spinneys announced record numbers for its first full-year financial results post IPO, boosted by new store openings, increased fresh and private label sales, strong like-for-like growth, and higher online penetration.
Annual revenue hit a record high of AED 3.2 billion ($870 million), increasing 12.3 per cent YoY. Profit before tax grew by 26.2 per cent to AED 323 million ($87.95 million). Despite the introduction of corporate tax, profit for the year increased 13.9 per cent to AED 290 million ($79 million).
Top-line growth was driven by annual like-for-like sales growth of 11.3 per cent and the opening of seven new stores in the UAE and Saudi Arabia, with particularly strong performance in Fresh Sales and Private Label, which grew by 1.8 per cent and 2.5 per cent, respectively.
Online sales penetration grew to 14.1 per cent during the year, as compared to 12.5 per cent in 2023.
Spinneys delivers strong results
Full-year gross profit increased by 10.8 per cent YoY to AED 1.3 billion ($350 million), with a stable gross profit margin of 41.4 per cent, which was achieved through efficient sourcing and supply chain management and Spinneys’ successful private label strategy.
Adjusted EBITDA totalled AED 631 million ($171.8 million) in 2024, up 12.1 per cent YoY, with an adjusted EBITDA margin of 19.5 per cent, including the impact of one-off IPO-related costs incurred in H1 2024 and in pre-opening expenses in Saudi Arabia (approximately AED 10 million).
During the year, transactions grew by 10.5 per cent to 37.3 million, while the average basket size remained stable at AED 87 ($23.7) as compared to AED 86 in 2023.
Sunil Kumar, Chief Executive Officer at Spinneys, commented: “2024 has been a milestone year for us, characterised by the continued execution of our growth strategy resulting in exceptionally strong financial results. Following our historic IPO on DFM, we achieved robust growth in revenue driven by increased like-for-like sales coupled with the expansion of our footprint in the UAE and Saudi Arabia.
“New store openings in key locations, both in Dubai and Riyadh, reflect our commitment to regional growth as we pursue the opportunities presented by sustained economic and demographic tailwinds in the GCC’s two most attractive markets.
“While the UAE remains the beating heart of our operations, we are strategically expanding to better serve customers throughout the Gulf. Looking ahead to 2025, we are confident in our ability to maintain this momentum, accelerating our expansion, deepening and diversifying our offering, and further building our market leadership.”
Spinneys’ Board of Directors has recommended a final dividend of AED 100.8 million ($27.45 million), equivalent to 2.80 fils per share and 70 per cent of profit for the year.
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