Spinneys Q3 2026 revenue rises 5.7% to Dh2.7 billion as UAE supermarket chain returns to growth

Dubai: Spinneys returned to revenue growth in the third quarter of 2026, with the UAE-listed supermarket operator reporting a 5.7 per cent increase in nine-month revenue to Dh2.74 billion, as more customers stayed in the country over the summer and its supply chain adapted to freight disruptions.

Revenue for the three months ended September 30 rose 6.9 per cent year-on-year to Dh831 million, recovering from a 1.6 per cent contraction in the second quarter.

The company attributed the improvement to stronger like-for-like sales, new store openings and increased contributions from fresh food, private-label products and online shopping.

Profit after tax for the first nine months increased 5.7 per cent to Dh224 million, while profit before tax rose 3.7 per cent to Dh262 million.

The results come after a challenging period for retailers dealing with supply chain disruption, freight pressures and an inflationary environment. Spinneys said its direct sourcing relationships, local production facilities and alternative freight arrangements helped it maintain product availability.

“Our return to growth in the third quarter reflects the strength of our value proposition, our efforts to maintain product availability in challenging conditions, and the trust our customers place in the Spinneys brand,” said Sunil Kumar, chief executive of Spinneys.

“More customers stayed in the country over the summer, which helped with sales, and it’s been encouraging to see the customer numbers continuing to grow since then.”

Spinneys recorded like-for-like sales growth of 3.3 per cent during the first nine months of 2026. It also opened nine stores across the UAE and Saudi Arabia over the past 12 months, contributing to revenue growth.

Customer transaction volumes increased 5.9 per cent year-on-year to 32.1 million during the nine-month period. The average basket size remained unchanged at Dh84.

Fresh food accounted for 65.7 per cent of sales, while private-label products contributed 47.6 per cent. Their respective sales penetration increased by 140 basis points and 230 basis points compared with the corresponding period last year.

The company's performance indicates that fresh food and its own-brand products remain important revenue drivers as it competes in the UAE's increasingly crowded grocery retail market.

Online sales increased 24.5 per cent year-on-year during the first nine months of 2026, with digital channels accounting for 19.5 per cent of total sales, compared with 16.6 per cent a year earlier.

Spinneys operates its own online platforms and works with third-party delivery partners to serve customers across different shopping requirements, from planned grocery orders to smaller, immediate purchases.

The growing contribution from online channels also highlights the importance of digital sales to traditional supermarket operators as customers increasingly expect convenient delivery options alongside in-store shopping.

Gross profit increased 4.6 per cent to Dh1.13 billion during the nine-month period. However, gross profit margin edged down to 41.2 per cent from 41.6 per cent a year earlier.

Adjusted EBITDA, a measure of operating earnings before interest, tax, depreciation and amortisation, increased 1.8 per cent to Dh512 million.

However, the adjusted EBITDA margin declined to 18.7 per cent from 19.4 per cent, reflecting the pressure of the inflationary environment despite revenue growth.

Profit before tax increased to Dh262 million, while profit after tax reached Dh224 million, up 5.7 per cent year-on-year.

For the third quarter alone, profit after tax rose 18.6 per cent to Dh49 million, compared with Dh41 million in the same period last year.

Spinneys said its integrated sourcing and operating model helped it navigate a full cycle of disruption, including a difficult freight environment.

The company relies on direct relationships with growers, owned production facilities and private-label ranges to maintain product availability and reduce its exposure to supply constraints.

Kumar said the recent challenges had prompted the company to take a closer role in managing freight operations and integrate alternative routes and transportation options.

“We are taking lessons from this period and using them to build a stronger business, getting closer to our freight operations, integrating all available routes and transportation options.”

Spinneys opened two stores during the third quarter, followed by two additional openings after the reporting period at Peninsula Business Bay and City Tower on Sheikh Zayed Road in Dubai.

The company plans to open two more stores before the end of 2026.

It is also preparing to enter Kuwait and the Philippines, with its first stores in both markets expected to open in the first quarter of 2027.

Spinneys operates 97 stores across the UAE, Oman and Saudi Arabia, including 84 owned stores and 13 operated stores, including Waitrose.

The planned international expansion marks another step in the company's growth strategy beyond its established Gulf markets.