Spinneys posts record Q1 revenue as store expansion drives growth

Retailer Spinneys has reported strong results for the first quarter of 2025, delivering a 11.3 per cent year-on-year rise in revenue to Dhs906.5m, up from Dhs815m in Q1 2024.

The group’s net profit for the period rose to Dhs85.2m, compared to Dhs74.7m a year earlier. Profit before tax jumped 23 per cent to Dhs101.9m, driven by revenue growth and operational efficiency gains.

UAE operations remained the core revenue engine, contributing Dhs864.2m in sales. Oman generated Dhs23.1m in revenue, while operations in Saudi Arabia and sourcing markets accounted for the rest. The UAE segment also delivered Dhs107.7m in profit before tax, underscoring its dominant role in the group’s earnings.

Spinneys saw a healthy uptick in gross profit, which climbed to Dhs374.7m in Q1 2025 from Dhs335.6m a year earlier. The group maintained robust cash generation, with net cash from operating activities reaching Dhs189.6m. This supported a 28 per cent increase in cash and cash equivalents, which stood at Dhs242.6m at the end of March.

“We have carried the momentum we built in 2024 into 2025, and this is evident in our Q1 results,” said Sunil Kumar, CEO of Spinneys.

“The continued execution of our growth strategy has again resulted in exceptionally strong financial performance.”

Kumar added that the opening of three new stores in Dubai during the quarter demonstrates “there is still a significant white space opportunity available to us, even where our footprint is strongest.”

The company declared a final dividend of Dhs100.8m for FY2024, approved in March and paid out in April 2025.

Selling, general and administrative (SG&A) expenses rose to Dhs198.6m, up from Dhs187.8m in Q1 2024, with higher premises and distribution costs contributing to the increase.

Meanwhile, the group booked a tax expense of Dhs16.7m — up from Dhs8m last year — as it factored in the UAE’s newly implemented 9 per cent corporate tax and a global minimum top-up tax of Dhs6.5m in line with OECD Pillar Two rules.

On the investment front, Spinneys spent Dhs21.7m on property, plant and equipment during the quarter, signalling ongoing expansion and modernisation. The retailer currently operates supermarkets in the UAE, Oman, and Saudi Arabia, with its DFM listing completed in May 2024 following an IPO of 900 million shares, amounting to 25 per cent of its share capital at the time.