Spinneys 1961 (SPINNEYS) Q2 2024 earnings summary

Executive summary

• Achieved record H1 2024 revenue of AED 1,597.5 million, up 9.9% year-over-year, with profit for the period rising 19.4% to AED 152.5 million.

• Like-for-like revenue grew 10% and adjusted EBITDA margin reached 19%.

• Ecommerce sales increased 22% year-over-year, now representing 14% of total revenue.

• Interim dividend of AED 102.6 million (2.85 fils per share) declared post-period end.

• Completed reorganisation and public listing on the Dubai Financial Market in May 2024.

Financial highlights

• Gross profit rose to AED 659 million, with gross margin at 41.3%.

• Adjusted EBITDA increased 9.4% to AED 304 million; profit before tax up 27.1% to AED 163 million.

• Cash and cash equivalents at 30 June 2024 stood at AED 517.5 million; free cash flow conversion at 84.5%.

• Net debt/Adjusted EBITDA at 1.3x, with over 99% of gross debt from lease liabilities.

• Earnings per share for H1 2024 at AED 0.042.

Outlook and guidance

• Positive medium-term outlook supported by robust macroeconomic conditions and a growing affluent population.

• Continued expansion in the UAE and Saudi Arabia, with a healthy pipeline of new stores.

• Focus on growing new revenue verticals, including food hall concepts and hyperlocal delivery.

• Management expects sufficient taxable profits to support deferred tax assets and sees no material uncertainties regarding going concern.

• Interim cash dividend of AED 102.6 million to be paid in Q3 2024.