Spinneys Report Record Revenue of $630 Million in 9M-2024
- Business Companies Earnings Regional
Global Business Magazine- 4 minutes read
Reflecting best-in-class margin profile and the efficiency of its operations, Spinneys, the region’s leading premium fresh food retailer, has reported a revenue of $630 million, increasing by 11.4% compared with the same period in 2023.
The profit before tax grew by 27.1% to $55.27 million, with profit for the period growing by a healthy 14.6% to $49.55 million during the first nine months of 2024. During Q3 of 2024, the company paid an interim dividend of $27.93 million to its shareholders.
Spinneys CEO Sunil Kumar said that the performance has been robust year-to-date performance, with revenues growing to record levels and strong profitability metrics both before and after tax.
With efficiency at the heart of the company’s business model, coupled with supportive macroeconomic tailwinds, the power of its brand continued to see them secure favourable supplier terms, optimise our supply chain and deliver the most attractive margins in the industry.
“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.
The revenue for first nine months increased by 11.4% y-o-y, driven by like-for-like sales growth of 11.1% and supported by the opening of four new locations since October 2023. They include “The Kitchen by Spinneys” in Dubai Mall, Spinneys Al Khawaneej (Dubai), Spinneys Sobha (Dubai) and Spinneys La Strada (Riyadh).
Ecommerce sales during 9M 2024 increased 23.4% y-o-y, accounting for 14.5% of total revenue and the revenue in Q3 of 2024 grew by 14.9% y-o-y to $190.85 million, with strong momentum generated in H1 of 2024 sustained through the third quarter.
The gross profit increased by 12% y-o-y to $258.10 million for the first nine months of 2024, 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 number of transactions grew by 9.8% y-o-y, reaching 27 million in 9M of 2024, reflecting growing customer demand on the back of supportive macroeconomic dynamics.
New Stores
Having opened four new stores since October 2023, the company has 13 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.
In Q3 of 2024, Spinneys inaugurated a new warehouse facility in Kezad (UAE), increasing storage capacity by 220%. It has also improved The Kitchen by Spinneys’ central production capabilities to support future Kitchen locations, as well as to supply essential products to selected stores.
In October 2024, Spinneys signed a 27-year agreement with Food Tech Valley, a UAE-government-led initiative aimed at building a sustainable food ecosystem.
As part of this agreement, Spinneys will establish a state-of-the-art 500,000 sq. ft. food processing facility planned to be operational by 2027. Investment in the facility is expected to contribute to increasing the UAE’s domestic food production capacity, reducing reliance on imports.
