Spinneys' Q1 profit climbs 14% as UAE expansion offsets new tax impact

Dubai: Spinneys reported its highest-ever quarterly revenue in Q1 2025, with income rising 11.3% year-on-year to Dh906 million. The growth was supported by new store openings, increased online sales, and stronger demand for fresh and private label products.

Adjusted EBITDA rose 20.6% to Dh182 million, giving the retailer an industry-leading margin of 20.1%. Profit before tax climbed 23.2% to Dh102 million, while net profit rose 14% to Dh85 million. The bottom-line result came despite a 6% effective increase in tax due to the OECD’s Pillar Two rules, which introduce a 15% minimum corporate tax.

The UAE-based grocery chain opened three new stores in Dubai during the quarter and plans to launch 10–12 additional outlets across the UAE and Saudi Arabia this year. Over the past 12 months, Spinneys has opened 10 stores in the region.

CEO Sunil Kumar attributed the results to continued execution of the company’s growth strategy, citing strong like-for-like sales and new store performance in both core and expansion markets. He noted that while the UAE remains central to operations, the company is preparing to open its first store in Jeddah later this year, building on demand seen in Saudi Arabia following its 2024 market entry.

Spinneys said it continues to see strong potential for growth in both its home and regional markets.