Spinneys, a leading fresh food retailer in the United Arab Emirates (UAE) and a recent Dubai Financial Market listee, has announced its financial results for the first quarter (Q1) of 2024.
The company achieved record sales of Dh815m ($221.89m), a 10.9% year-on-year (YoY) increase.
Go deeper with GlobalData
Revenue growth and profitability
The company said this strong performance was driven by a healthy rise in both transaction volume (up 9.5% YoY) and average basket size.
Spinneys also reported a significant increase in gross profit (more than 15% YoY) with margins expanding to a robust 41.2%.
This improvement reflects the company’s efficient sourcing and supply chain, along with the success of its private label strategy.
Adjusted earnings before interest, taxes, depreciation, and amortisation reached Dh151m, up 8.7% YoY, despite one-time initial public offering-related expenses and preopening costs associated with its upcoming Saudi Arabian launch.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataSpinneys also saw a net profit margin improvement of 20 basis points to 9.2%.
E-commerce growth and store expansion
Spinneys’ online presence continues to flourish, with e-commerce sales exceeding Dh110m in Q1, representing 14% of its total revenue.
The company recently launched the Spinneys Swift app, offering a hyperlocal delivery service to cater to evolving consumer preferences.
Spinneys remains committed to physical store expansion. Over the past year, it has opened three new stores, bringing its total network to 75 locations in the UAE.
While two stores were closed/transferred during this period, the company said it plans to leverage significant whitespace opportunities in both the UAE and Saudi Arabia.
Notably, its debut Saudi Arabian store, La Strada, is scheduled to open in Riyadh during the first half (H1) of 2024, with three additional stores planned before year-end.
Investing in the future
Spinneys said it is actively pursuing several growth initiatives.
This includes a pipeline of new stores in the UAE, with the aforementioned three expected to open in 2024.
Additionally, it plans to launch its first standalone dining concept, ‘The Kitchen, by Spinneys,’ in H1 2024.
