UAE-based fresh food retailer Spinneys has announced its financial results for the first half of 2024, reporting record revenues of AED1.6 billion, a 9.9 percent increase year-on-year.
The company’s profit for the period rose 15.2 percent to AED146 million, despite the introduction of a 9 percent corporate tax in the UAE and one-off expenses related to its recent IPO.
Spinneys’ board has approved its first post-IPO interim dividend of AED102.6 million, equivalent to 2.85 fils per share, representing 70 percent of distributable profits.
“We are delighted to report record revenues for H1 2024, reflecting robust and growing demand for our unique proposition. These results also mark a significant milestone as we announce our first post-IPO interim dividend, demonstrating our commitment to delivering value to our shareholders,” Chief Executive Officer Sunil Kumar said.
The retailer opened four new stores in H1 2024, including its first location in Saudi Arabia and a new food hall concept called ‘The Kitchen, by Spinneys’ in Dubai Mall.
Spinneys e-commerce sales surge 21.7% in first half of 2024
The company’s e-commerce sales increased by 21.7 percent year-on-year, reaching AED217 million and accounting for 13.6 percent of total revenue.
“Coupled with the successful upgrade of our e-commerce app, which now includes hyperlocal option Spinneys Swift, these achievements underscore our commitment both to growth and innovation and provide us with powerful momentum to carry into the second half of the year,” Kumar added.
The company reported strong like-for-like sales growth of 9.8 percent and a 9 percent increase in transactions to 18.3 million for the H1 2024 period.
Spinneys’ gross profit margin improved by 90 basis points to 41.3 percent, which the company attributes to efficient sourcing and supply chain capabilities, as well as its successful fresh premium offering and private label strategy.
As of June 30, 2024, Spinneys operates 79 stores across the UAE, Oman, and Saudi Arabia.
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