Spinneys, the region’s premium food retailer, today (November 8) delivered solid results for the first nine months with a record revenue of AED2.3 billion ($626 million), up 11.4% growth over last year driven by like-for-like sales growth of 11.1% and supported by the opening of four new locations since October last year - The Kitchen by Spinneys in Dubai Mall, Spinneys Al Khawaneej (Dubai), Spinneys Sobha (Dubai) and Spinneys La Strada (Riyadh). The ecommerce accounted for 14.5% of its nine-month revenue.

 

Announcing the financial results for the nine-month period ended September 30, 2024, Spinneys said its profit before tax surged by 27.1% to AED203 million (representing an 8.8% profit before tax margin), reflecting its best-in-class margin profile and the efficiency of is operations, while profit for the period increased by 14.6% to AED182 million (representing a 7.9% net profit margin), after absorbing the impact of the recently introduced 9% Corporate Tax in the UAE.

 

Adjusted ebitda for the period totalled AED421 million, up 8.8% year-on-year, with an adjusted ebitda margin of 18.3%, including the impact of one-off IPO-related costs incurred in H1 2024 and more than AED10 million in pre-opening expenses in Saudi Arabia. 

 

The premium food retailer's gross profit increased by 12% year-on-year to AED948 million for the 9M 2024 period, with a stable gross profit margin of 41.2%, achieved through efficient sourcing and supply chain management and Spinneys’ highly successful private label strategy, emphasizing sales of high-margin products.

 

The transaction growth rose 9.8% year-on-year, reaching 27 million transactions in nine months reflecting growing customer demand on the back of supportive macroeconomic dynamics.

 

Spinneys said it continues to benefit from the strength of its brand equity and strategy, with growth momentum sustained throughout the year. 

 

Having opened four new stores since October 2023, the company has 12 signed leases in the UAE and Saudi Arabia to further support network expansion and tap into the compelling whitespace opportunity presented by both markets.

 

In addition, Spinneys completed refurbishment and expansion at selected stores, expanding Spinneys RAK Al Hamra and Waitrose Saadiyat Beach by 26% and 51% respectively, as well as introducing meal solutions and health & beauty sections.

 

On its Q3 results, Spinneys said its revenue for the three-month period ended September 30, 2024 grew by 14.9% year-on-year to hit AED701 million, with strong momentum generated in H1 2024 sustained through the third quarter.

 

Spinneys continued to make rapid progress on its store expansion programme.

 

In Q3, it inaugurated a new warehouse facility in Kezad (UAE), increasing storage capacity by 220%. The  company also improved The Kitchen by Spinneys’ central production capabilities to support future Kitchen locations, as well as to supply essential products to selected stores. 

 

Since the beginning of 2024, Spinneys has made significant strides in enhancing customer convenience through the continued expansion of Spinneys Swift, its hyperlocal delivery service. 

 

The service now covers 31% of the ecommerce catchment area and accounts for 18% of own platform ecommerce sales, reinforcing Spinneys' focus on meeting customer expectations with a 60-minute delivery promise, it stated.

 

For the period, the company paid an interim dividend of AED102.6 million, or 2.85 fils per share, to shareholders.

 

On the solid performance, CEO Sunil Kumar said: "We are pleased to report very robust year-to-date performance, with revenues growing to record levels and strong profitability metrics both before and after tax. All at Spinneys remain firmly committed to delivering on our ambitious growth plans as we widen our footprint in the UAE, accelerate our expansion in Saudi Arabia, roll-out new concepts and deepen our ecommerce offering."

 

"With efficiency at the heart of our business model, coupled with supportive macroeconomic tailwinds, the power of our brand continues to see us secure favorable supplier terms, optimize our supply chain and deliver the most attractive margins in our industry," stated Kumar. 

 

"As we aggressively pursue sustained and profitable growth, our unique premium fresh positioning continues to set us apart. This is the platform on which we are building our future," he added.-TradeArabia News Service