Food retailer Spinneys said six new store openings helped revenues increase 13.7 per cent YoY for the first half of 2025 and reached AED 1.8 billion (US$490 million).
Increased fresh and private label sales, strong like-for-like growth, and higher online penetration also played a significant part as profit before tax grew by 24.4 per cent to AED 202 million (US$55 million), and profit increasing 16.2 per cent to AED 170 million (US$46.3 million), after absorbing the impact of 6 per cent additional tax on applicability of a minimum tax of 15 per cent.
New stores boost Spinneys performance
Top-line growth was driven by like-for-like sales growth of 12.1 per cent and the opening of nine new stores across the UAE and Saudi Arabia since July 2024. Fresh (64.3 per cent up) and private label sales (44.7 per cent up) performed well for Spinneys with penetration growing by 0.5 per cent and 1.9 per cent, respectively. Online sales penetration grew to 16.2 per cent during the year, as compared to 13.6 per cent in H1 2024.
Sunil Kumar, Chief Executive Officer at Spinneys, commented: “Our strong performance in the first half of 2025 reflects the strength of the Spinneys brand and our continued focus on delivering fresh, high-quality food experiences to our customers across the region.
“Strong like-for-like growth, the success of our fresh and private label ranges, and the acceleration of our online and store expansion strategy have all contributed to robust top- and bottom-line results.
“We were especially encouraged by the successful launch of Discovery by Spinneys, our new premium private label range, which has already resonated strongly with customers. This marks the beginning of a broader journey to bring exclusive, high-quality products to our customers.
“As we look ahead, we remain focused on deepening our presence in core markets, continuing our expansion in Saudi Arabia, enhancing operational efficiencies, and creating long-term value for our stakeholders.”
Spinneys said it maintains a positive outlook for 2025 and reaffirmed its previously announced guidance for full-year 2025. The company expects to open 10-12 new stores across the UAE and Saudi Arabia for the full year. Annual revenue growth is expected to be between 9-11 per cent. It also expects to maintain its industry-leading adjusted EBITDA margin of 19-2 per cent.
Gross profit increased by 14.2 per cent YoY to AED 753 million in the first six months of 2025, with a stable gross profit margin of 41.5 per cent compared to 41.3 per cent in 2024, achieved through efficient sourcing and supply chain management and the company’s private label strategy, which emphasises high-margin products.
Adjusted EBITDA totalled AED 365 million (US$99.4 million) in the first half of 2025, up 20 per cent YoY, with an adjusted EBITDA margin of 20.1 per cent, compared to 19.0 per cent in 2024.
Transaction volume grew by 12.2 per cent year-on-year to 20.6 million. The average basket size remained flat at AED 88 (US$23.96).
In post-period events, Spinneys opened two more stores in the UAE – Spinneys Mina Port and The Kitchen by Spinneys Wafi Mall.
