Spinneys 1961 (SPINNEYS) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 revenue of AED 906.5m, up 11.3% YoY, with strong like-for-like sales growth of 6.7% and ecommerce growth of 26% YoY, now representing 15.6% of sales.

• Net profit attributable to equity holders rose to AED 88.6m from AED 77.2m YoY, with profit before tax up 23.2% to AED 102m.

• Adjusted EBITDA margin reached 20.1%, among the highest in the industry.

• The group operates supermarkets in the UAE, Oman, and Saudi Arabia, with UAE as the primary market.

• The company was listed on the Dubai Financial Market in May 2024.

Financial highlights

• Gross profit grew 11.7% YoY to AED 375m, with gross margin stable at 41.3%.

• Adjusted EBITDA increased 20.6% YoY to AED 182m.

• Free cash flow conversion was 96.9%, with free cash flow at AED 120m.

• Net debt reduced to AED 387m, with cash and bank balances of AED 660m.

• Total assets as of 31 March 2025 were AED 2.29bn, up from AED 2.19bn at year-end 2024.

Outlook and guidance

• Revenue growth guidance for FY2025 is 9-11%, with like-for-like revenue growth of 4-6%.

• Adjusted EBITDA margin expected between 19-20%, and capex as a percentage of revenue at 3.5-4.5%.

• Plans to open 10-12 new stores in FY2025, with 2 closures expected.

• Management expects moderate seasonal fluctuations due to Ramadan, summer holidays, and festive seasons.

• Strategic focus on expanding in UAE and KSA, refurbishing 6 supermarkets, and launching new concepts like Spinneys Kitchen and Cafés.