Spinneys 1961 (SPINNEYS) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 was AED 1,816.1 million, up 13.7% year-over-year, with profit after tax of AED 170.2 million, up 16.2% year-over-year.

• Like-for-like sales grew 12.1% and ecommerce sales surged 35.5% year-over-year, now representing 16.2% of total sales.

• The group completed its IPO and was listed on the Dubai Financial Market in May 2024.

• Interim dividend of AED 120m (3.32 fils per share) approved for H1 2025.

Financial highlights

• Gross profit for H1 2025 was AED 752.8 million (+14.2% YoY); adjusted EBITDA AED 365m (+20.0% YoY); profit after tax AED 170.2m (+16.2% YoY).

• Free cash flow conversion at 95.5%; cash and bank balances of AED 688m; cash and cash equivalents at period end were AED 255.9m.

• Net debt at AED 362m, with over 99% of gross debt related to lease liabilities.

• Like-for-like retail revenue growth of 12.1% for H1 2025; Q2 2025 LFL growth at 15.7%.

• Total assets as of 30 June 2025 were AED 2,312.6 million, with total equity of AED 369.2 million.

Outlook and guidance

• Plans to open 12 new stores in UAE in 2025, including two with the Kitchen concept; expansion in KSA with new stores in Riyadh and Jeddah.

• Continued rollout of Spinneys Swift delivery and further expansion of private label categories.

• FY2025 guidance: revenue growth of 9-11%, LFL revenue growth of 4-6%, adjusted EBITDA margin of 19-20%, and capex at 3.5-4.5% of revenue.

• The Board resolved to distribute an interim cash dividend of AED 119.5 million (AED 0.0332 per share) in Q3 2025.

• The business is subject to moderate seasonal fluctuations, notably during Ramadan and festive periods.