Spinneys H1 net profit rises 15.2%, Dhs102.6m in interim dividend approved

UAE-based supermarket chain Spinneys has reported that revenues for the period ending on June 30 reached Dhs1.6bn, marking a 9.9 per cent year-on-year increase, with net profit climbing 15.2 per cent to Dhs146m.

The Dubai-listed supermarket chain announced a profit of Dhs72m for Q2 of 2024, up 17.8% year-on-year.

Spinneys‘ strong financial performance highlights its strategic focus on operational efficiency and premium product offerings.

Spinneys confirmed it will pay its first post-IPO interim dividend of Dhs102.6m, equivalent to 2.85 fils per share and representing 70 per cent of distributable profits, in August, the company said in a statement.

Sunil Kumar, CEO at Spinneys, said: “During the first half of the year, we made several important steps in the execution of our strategy, expanding our footprint by opening four new stores including our new innovative foodhall concept, The Kitchen, by Spinneys. We also opened our first-ever store in Saudi Arabia, entering a compelling market where we see immense growth potential. Coupled with the successful upgrade of our e-commerce app, which now includes the 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.”

Factors that contributed to Spinneys H1 performance

The company’s gross profit rose by 12.3 per cent year-on-year to Dhs659m, with a gross profit margin of 41.3 per cent, up 90 basis points from the previous year.

This margin expansion was attributed to Spinneys’ efficient sourcing and supply chain capabilities, along with a successful strategy in offering fresh premium products and private-label goods.

Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) increased by 9.4 per cent year-on-year to Dhs304m, achieving a margin of 19 per cent.

This performance was achieved despite one-off IPO-related costs and pre-store opening expenses in Saudi Arabia.

Profit before tax saw a significant rise of 27.1 per cent year-on-year, reaching Dhs163m. The net profit margin improved by 50 basis points, reaching 9.2 per cent.