New stores propel Spinneys' Q1 revenue to all-time high of $246.7mn, up 11.3%

Arabian Business

13-05-2025

Spinneys' first-quarter revenue hit a record high of AED906 million (US$246.7 million), increasing 11.3 per cent year-on-year.
Profit before tax grew by 23.2 per cent to AED102 million (US$27.8 million), with profit for the period increasing by 14 per cent to AED85 million (US$23.1 million), after absorbing the impact of 6 per cent additional tax on applicability of Pillar Two Rules, which provides for a minimum tax of 15 per cent.
Retail growth momentum
The region's fresh food retailer attributed the growth to the opening of three new stores during the quarter, increased Fresh and Private Label sales, strong like-for-like growth, and higher online penetration.
Like-for-like sales increased 6.7 per cent with the opening of 10 new stores across the UAE and Saudi Arabia since April 2024. Fresh and Private Label sales were strong, with penetration growing by 1 per cent and 1.2 per cent, respectively. Online sales penetration grew to 15.6 per cent during the year, as compared to 13.7 per cent in Q1 2024.
Transaction volume grew by 7.8 per cent YoY to 9.9 million. The average basket size also increased – to AED92 (US$25), up 2.9 per cent compared to AED89 in Q1 2024.
Sunil Kumar, Chief Executive Officer at Spinneys, commented: 'We have carried the momentum we built in 2024 into 2025, and this is evident in our Q1 results.
'The continued execution of our growth strategy has again resulted in exceptionally strong financial performance. We have achieved robust growth in revenue driven by increased like-for-like sales coupled with the expansion of our store network in the UAE and Saudi Arabia. Three new store openings in Dubai in the first quarter demonstrate that there is still a significant white space opportunity available to us, even where our footprint is strongest.
'While the UAE remains the core of our operations, we continue to explore growth opportunities throughout the GCC and look forward to more store openings in Saudi Arabia. These will include our first store in Jeddah in the second half of the year, which comes on the back of exceptionally strong consumer demand for us to expand beyond Riyadh.'
Gross profit during the quarter increased by 11.7 per cent year-on-year to AED375 million (US$102.1 million), with a stable gross profit margin of 41.3 per cent, compared to 41.2 per cent in 2024. This was achieved through efficient sourcing and supply chain management and Spinneys' successful Private Label strategy, which emphasises high-margin products.
Adjusted EBITDA was AED182 million, up 20.6 per cent year-on-year, with an adjusted EBITDA margin of 20.1 per cent, up from 18.5 per cent in the corresponding quarter in 2024.
Spinneys maintains a positive outlook for the rest of the year, expecting to open 10-12 new stores across the UAE and Saudi Arabia by year-end. Annual revenue growth is expected to be between 9-11 per cent, driven by new store openings and like-for-like sales growth of 4-6 per cent. The company expects to maintain an adjusted EBITDA margin of 19-20 per cent.