UAE supermarket operator Spinneys hits Dh2.29 billion in 9-month revenues

Dubai: The Dubai headquartered retailer Spinneys ticked all the boxes when it comes to growth for the first nine months of 2024, with revenues now at its highest point of Dh2.29 billion from Dh2.06 billion a year ago.

There are gains on the bottom line too, with profit at Dh182 million against Dh159 million a year ago.

The DFM-listed supermarket operator recently added Saudi Arabia to its network, and with the first sighting of returns showing up.

Spinneys recently paid an interim dividend of Dh102.6 million, or 2.85 fils per share, to shareholders.

It now 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'.

Chasing higher margins

Spinneys also completed refurbishment and expansion at some of its outlets, expanding Spinneys RAK Al Hamra and Waitrose Saadiyat Beach, apart from introducing meal solutions and health and beauty sections. (The latter categories are seen as helping improve margins in the medium term, according to analysts.)

In the nine months this year, gross profit increased 12% to Dh948 million with a 'stable' profit margin of 41.2%. This was achieved through 'efficient sourcing and supply chain management' apart from higher returns through its 'highly successful private label strategy, emphasizing sales of high-margin products'.

Apart from adding to its UAE presence, the plan is to 'accelerate our expansion in Saudi Arabia, roll out new concepts and deepen our ecommerce offering', said Sunil Kumar, CEO of Spinneys.

The stock is trading at Dh1.52 on DFM against the IPO price of Dh1.53.