Annual revenue hits record high of AED 3.2 billion in 2024, driven by like-for-like sales growth, new store openings and geographic expansion into Saudi Arabia
Adjusted EBITDA of AED 631 million, up 12.1%, at an industry-leading margin of 19.5%
Profit before tax grew 26.2% to AED 323 million, with profit for the year up 13.9% to AED 290 million despite corporate tax impact
Seven new stores opened across UAE and Saudi Arabia in 2024, strengthening presence in key growth markets, with 10-12 new stores expected to open in 2025
Board recommends final dividend of c. AED 101 million, to be distributed in April 2025 subject to AGM approval
Spinneys, the region’s leading premium fresh food retailer, has announced its financial results for the twelve-month and three-month periods ended 31 December 2024. Annual revenue hit a record high of AED 3.2 billion, increasing 12.3% year-on-year, driven by new store openings, increased fresh and private label sales, strong like-for-like growth, and higher online penetration. Profit before tax grew by 26.2% to AED 323 million, with profit for the year increasing by a healthy 13.9% to AED 290 million, despite the introduction of corporate tax and reflecting Spinneys’ industry-leading efficiency and margin profile.
Sunil Kumar, Chief Executive Officer at Spinneys, commented: “2024 has been a milestone year for us, characterised by the continued execution of our growth strategy resulting in exceptionally strong financial results. Following our historic IPO on DFM, we achieved robust growth in revenue driven by increased like-for-like sales coupled with the expansion of our footprint in the UAE and Saudi Arabia. New store openings in key locations, both in Dubai and Riyadh, reflect our commitment to regional growth as we pursue the opportunities presented by sustained economic and demographic tailwinds in the GCC’s two most attractive markets.
“While the UAE remains the beating heart of our operations, we are strategically expanding to better serve customers throughout the Gulf. With a focus on ever-evolving customer demands, efficient sourcing and innovation, we’re positioned to deliver sustainable growth and an unmatched shopping experience to communities across the region. Looking ahead to 2025, we are confident in our ability to maintain this momentum, accelerating our expansion, deepening and diversifying our offering, and further building our market leadership.”
Record Top-Line Growth, Best-in-Class Profitability
Revenue: Increased by 12.3% year-on-year, reaching AED 3.2 billion for the twelve-month period. Top-line growth was driven by annual like-for-like sales growth of 11.3% and the opening of seven new stores in the UAE and Saudi Arabia, with particularly strong performance in Fresh Sales and Private Label, which grew by 1.8% and 2.5 %, respectively. Online sales penetration grew to 14.1% during the year, as compared to 12.5% in 2023.
Profitability: Full-year gross profit increased by 10.8% year-on-year to AED 1.3 billion, with a stable gross profit margin of 41.4% vs. 42% in 2023, achieved through efficient sourcing and supply chain management and Spinneys’ highly successful private label strategy, which emphasizes high-margin products. The slight decline in gross margin is attributed to lower margins in Saudi Arabia and temporarily higher wastage in newly opened stores, which was partially offset by the increase in fresh and private label share of sales.
Adjusted EBITDA[2] totaled AED 631 million in 2024, up 12.1% year-on-year, with an adjusted EBITDA margin[3] of 19.5%, including the impact of one-off IPO-related costs incurred in H1 2024 and more than AED 10 million in pre-opening expenses in Saudi Arabia.
Twelve-month profit before tax grew by 26.2% to AED 323 million at a 10% profit before tax margin (up from 8.9% in 2023), while profit for the year increased by 13.9% to AED 290 million at a 9% profit margin (up from 8.9% in 2023), after absorbing the impact of the 9% corporate tax introduced in the UAE in January 2024.
Transaction growth: Transactions grew by 10.5% year-on-year to 37.3 million, reflecting growing customer demand on the back of supportive macroeconomic dynamics, while the average basket size remained stable at AED 87 as compared to AED 86 in 2023, up 1.4%.
Resolute Strategic Execution
Store network expansion: Spinneys continued to successfully execute its growth strategy through the expansion of its store footprint. From January to December 2024, the Company opened five new stores in the UAE and two in Saudi Arabia, resulting in a significant increase in gross selling area.
Digital transformation: In line with its digital transformation programme, Spinneys launched a new customer app featuring the Swift delivery option, enhancing ordering convenience. Additionally, the Company has ensured that The Kitchen by Spinneys’ range of high-quality, convenience-focused ‘on-the-go’ products is available on select online platforms.
Grocerant concept: Spinneys continued to evolve its ‘grocerant’ concept with the successful launch of The Kitchen by Spinneys at Dubai Mall in Q2, named by IGD as one of the ’35 Global Must-See Stores in 2025,’ followed by a second opening at Dubai’s Creek Beach in Q4. The latest location combines The Kitchen by Spinneys and a small grocery section, elevating customer experience.
Strong brand position: Spinneys continues to strengthen its market position through the power of its brand equity, with momentum sustained throughout the year. In 2024, the Company celebrated its 100th anniversary and was named ‘Grocery Retailer of the Year’ at both the RetailME Awards and Good Food Awards.
Board Recommends AED 101 million Final Dividend
The Company’s Board of Directors has recommended a final dividend of AED 100.8 million, equivalent to 2.80 fils per share and 70% of profit for the year. Subject to shareholder approval at the Annual General Meeting, the dividend is expected to be distributed in April 2025. Coupled with an interim dividend of AED 102.6 million paid during Q3, the Company will have paid out AED 203.4 million to shareholders in respect of the 2024 financial year.
