Spinneys 1961 (SPINNEYS) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 rose 5.1% year-over-year to AED 1.9 billion, driven by like-for-like sales growth of 1.9%, new store openings, and increased e-commerce and private label sales.

• Profit after tax increased 2.5% to AED 175 million, with adjusted EBITDA up 1.2% to AED 369 million and margin at 19.4%.

• E-commerce sales surged 23.6% year-over-year, now representing 19.1% of total sales.

• Store count increased to 93, with 11 new stores opened and one closed; gross selling area surpassed 1 million square feet.

• Interim dividend of AED 122.4 million (3.40 fils per share) declared for H1 2026.

Financial highlights

• Gross profit for H1 2026 was AED 784 million, up 4.1% year-over-year, with gross margin at 41.0% (down 0.5% year-over-year).

• Adjusted EBITDA for H1 2026 was AED 369 million, margin at 19.4%.

• Profit before tax was AED 203 million (+0.5% year-over-year), with profit margin for the period at 9.1%.

• Free cash flow conversion was 77.5%, with free cash flow at AED 194 million.

• Net debt stood at AED 225 million, with cash and bank balances of AED 843 million.

Outlook and guidance

• FY2026 revenue growth guidance is 9–11%, with like-for-like revenue growth of 6–8% and adjusted EBITDA margin guidance of 18–20%.

• Store expansion to continue in Kuwait and the Philippines, with launches expected by early 2027.

• Continued investment in Saudi Arabia, increasing ownership by 20% to accelerate turnaround.

• Guidance will be revisited in Q3 2026.

• Management remains focused on mitigating risks from geopolitical and macroeconomic uncertainties.