Spinneys to Open 12 Stores by End of 2025

Buoyed by spurt in sales and maintaining a positive outlook for the remaining period of this year, Spinneys, the region’s leading premium fresh food retailer, is planning to open 10 to 12 new stores across the UAE and Saudi Arabia by year-end.

The annual revenue growth is expected to be between 9% and 11%, driven by new store openings coupled with like-for-like sales growth of 4-6%.

The company also successfully executed its growth strategy through the expansion of its store footprint as it has opened eight new stores in the UAE and 2 in Saudi Arabia, resulting in a significant increase in gross selling area between 1 April 2024 and 31 March 2025.

The also company added one more store in April 2025 in Dubai’s Nad Al Sheba Mall. The Company expects to maintain its industry-leading adjusted EBITDA margin of 19%-20%.

Q1 Financial Results

The revenue of Spinneys, hit a record high of $246.66 million, increasing 11.3% versus Q1 of 2024, driven by three new store openings during the quarter, increased fresh and private label sales, strong like-for-like growth, and higher online penetration.

Profit before tax grew by 23.2% to $27.77 million, with profit for the period increasing by a healthy 14% to $23.14 million, after absorbing the impact of 6% additional tax on applicability of Pillar Two Rules which provides for a minimum tax of 15%, thus, reflecting Spinneys’ industry-leading efficiency and margin profile. 

Spinneys CEO Sunil Kumar said that they have carried the momentum that was built in 2024 into 2025, which was evident in the company’s Q1 results. The continued execution of Spinneys growth strategy has again resulted in exceptionally strong financial performance.

He said that they have achieved robust growth in revenue driven by increased like-for-like sales coupled with the expansion of our store network in the UAE and Saudi Arabia. The opening of three new stores in Dubai in the first quarter demonstrate that there is still a significant white space opportunity available to them, even where the company’s footprint is strongest. 

“While the UAE remains the core of our operations, we continue to explore growth opportunities throughout the GCC and look forward to more store openings in Saudi Arabia. These will include our first store in Jeddah in the second half of the year, which comes on the back of exceptionally strong consumer demand for us to expand beyond Riyadh, where we opened our first two Saudi stores in 2024,” he said.

Profitability

The gross profit increased by 11.7% y-o-y to $102.10 million, with a stable gross profit margin of 41.3% compared with 41.2% in 2024, achieved through efficient sourcing and supply chain management and Spinneys’ highly successful Private Label strategy, which emphasised high-margin products. 

Adjusted EBITDA totalled $49.55 million in the first quarter, up 20.6% y-o-y, with an adjusted EBITDA margin of 20.1%, compared with 18.5% in 2024.

Transaction volume grew by 7.8% y-o-y to 9.9 million in Q1, reflecting growing customer demand on the back of supportive macroeconomic dynamics, while the average basket size increased to $25.05 as compared to $24.23 in Q1 of 2024, up 2.9%.