Dubai-based Spinneys reports a 12% increase in third-quarter profit, reaching $9.6 million, due to improved efficiency in operations
Dubai supermarket chain Spinneys 1961 Holding announced on Friday that its net profit for the third quarter grew 11.6% from last year, reaching $9.6 million (AED 35.4 million), due to strong profit margins and efficient operations.
Third-Quarter Results
The retail chain reported that its revenue increased by 14.9% to $191 million (AED 701.4 billion) from July to September, compared to the same period last year. This growth continued from strong sales earlier in the year.
The cost of sales for the third quarter rose to $112.3 million (AED 412.4 million) from $95.4 million (AED 350.4 million) in the same period last year.
“Spinneys continues to benefit from its strong brand and strategy, showing growth throughout the year,” the company stated.
For the first nine months of the year, Spinneys’ revenue grew by 11.4% to $625.9 million (AED 2.3 billion), helped by a like-for-like sales increase of 11.1% and the opening of four new locations since October 2023: Kitchen by Spinneys in Dubai Mall, Spinneys Al Khawaneej (Dubai), Spinneys Sobha (Dubai), and Spinneys La Strada (Riyadh).
Since its initial public offering (IPO) in May, which raised $375.7 million (AED 1.4 billion), Spinneys reported that online sales made up 14.5% of its revenue in the first nine months.
Net profit from January to September went up by 14.6% to $49.5 million (AED 181.9 million), from $43.2 million (AED 158.7 million) the previous year.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 8.8% to $114.6 million (AED 421 million), with an adjusted EBITDA margin of 18.3%.
Big Numbers
The total number of transactions in the retain chain grew by 9.8% compared to last year, reaching 27 million transactions for the first nine months of the year. This increase reflects higher customer demand, supported by a positive economic environment.
Retail Network Expansion
Spinneys is focusing on growth with strong progress in opening new stores in the UAE and Saudi Arabia. The company now has 79 locations, contributing to higher sales.
Since October 2023, Spinneys opened four new stores in the UAE and signed 12 new lease agreements in the UAE and Saudi Arabia to keep growing.
Spinneys also renovated and expanded some stores, increasing the size of Spinneys RAK Al Hamra and Waitrose Saadiyat Beach by 26% and 51%, respectively.
In the third quarter, Spinneys opened a new warehouse in Kezad, UAE, which increased storage space by 220%. The company also improved The Kitchen by Spinneys’ production capabilities to support more Kitchen locations and supply products to selected stores.
Food Tech Valley Venture
In October 2024, Spinneys signed a 27-year agreement with Food Tech Valley, a UAE government project focused on creating a sustainable food system. The company announced that it will build a 500,000-square-foot food processing facility, which will be ready by 2027.
Key Quote
Sunil Kumar, CEO of Spinneys, said, “We are committed to achieving our growth goals as we expand in the UAE and Saudi Arabia, introduce new ideas, and improve our online shopping services. Our business model focuses on efficiency, and with strong support from the economy, our brand allows us to secure better deals with suppliers, improve our supply chain, and maintain strong profits. As we work towards long-term growth, our focus on high-quality fresh products helps us stand out. This is the foundation for our future plans.”
Published: 8th November 2024
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