Supermarket chain Spinneys posts Dhs75m in Q1 profit

Image credit: Spinneys

Supermarket chain Spinneys 1961 Holding said its quarterly net profit rose by 12.8 per cent year-on-year (YoY) to Dhs75m with a net profit margin of 9.2 per cent, a c.20 basis point improvement from a year ago.

Spinneys’ revenues in three months to March 31 jumped by 10.9 per cent YoY to reach Dhs815m, supported by an increase in retail revenue, with transactions remaining healthy, up by 9.5 per cent year-on-year.

The company, said in a statement, that its gross profit surged by more than 15 per cent YoY to reach Dhs336m in the first quarter, with a gross profit margin of 41.2 per cent in Q1 2024, a 150-basis point improvement versus the prior year.

Spinneys’ adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) for Q1 2024 came in at Dhs151m, up 8.7 per cent YoY, with an EBITDA margin of 18.5 per cent,  hurt by one-off initial public offering-related (IPO) costs of Dhs10m and pre-store opening expenses in Saudi Arabia.

“With our entry into the highly attractive Saudi market set to take place in the current quarter, we look forward to continuing delivering exceptional value to our customers, achieving sustainable growth and creating long-term shareholder value,” said Sunil Kumar, CEO of Spinneys.

Meanwhile, Spinneys 1961 Holding’s soared on its trading debut on the Dubai Financial Markets last week after the company raised $375m (Dhs1.38bn) from its IPO that attracted orders worth $19bn.

The company’s shares started trading at Dhs1.70, against its IPO price of Dhs1.53, the top end of the company’s planned price range, rising as much as 11 per cent before dropping slightly to Dhs1.59 as at 12.15 pm GST.

Spinneys’ IPO attracted two cornerstone investors in Emirates International Investment Company (EIIC), the strategic investment arm of Abu Dhabi-based National Holding, and Franklin Templeton.

Cornerstone investors committed to taking up an aggregate of $75m in the offering.

Read: Supermarket chain Spinneys’ $375m IPO draws orders worth $19bn