Spinneys 1961 (SPINNEYS) Q4 2024 earnings summary

Executive summary

• Achieved record revenue of AED 3.2bn for FY2024, with like-for-like revenue up 11.3% and adjusted EBITDA margin at 19.5%.

• Profit before tax rose 26.2% to AED 323m; profit for the period increased 13.9% to AED 290m despite new corporate tax.

• Board recommended a final dividend of AED 101m (2.80 fils/share); interim dividend of AED 102.6m paid.

• Expanded store footprint to 80, including new entries in Saudi Arabia and launch of a new food hall concept in UAE.

• Listed on the Dubai Financial Market in May 2024 after reorganization and conversion to a public company.

Financial highlights

• Revenue for 2024 was AED 3,226 million, up 12.4% year-over-year; gross profit increased to AED 1,336 million.

• Adjusted EBITDA increased 12.1% to AED 631m; margin at 19.5%.

• Free cash flow conversion at 58.9%; net debt/EBITDA at 0.8x.

• Basic and diluted EPS rose to AED 0.0845 from AED 0.0712.

• Interim dividend of AED 102.6 million paid; final dividend of AED 100.8 million proposed.

Outlook and guidance

• Plans to open 10-12 new stores in FY2025, including expansion in UAE and KSA.

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

• Adjusted EBITDA margin expected at 19-20%; capex as % of revenue at 3.5%.

• Focus on private label, direct sourcing, and enhancing customer experience.