Spinneys profit rises 25% on UAE and Saudi expansion

Spinneys

UAE supermarket operator Spinneys said net profit attributable rose to AED39.7 million ($10.6 million) in the third quarter, an increase of 25 percent from AED31.8 million a year ago.

The profit rise was driven by expansion in the UAE and Saudi Arabia, the roll-out of new concepts and the expansion of its e-commerce offerings.

Top line was up 15 percent year on year to AED701 million in the third quarter, driven by opening of four new stores since October 2023.

The company signed 12 leases in the UAE and Saudi Arabia to further support network expansion and tap into the whitespace opportunity offered by both markets. 

In addition, Spinneys completed refurbishment and expansion of selected stores, expanding RAK Al Hamra and Waitrose Saadiyat Beach by 26 and 51 percent, respectively.

Nine-month revenue hit a new high of AED2.3 billion, rising 11.4 percent compared to the same period last year.

Net profit attributable reached AED192.2 million, rising 21 percent year on year.

The company paid an interim dividend of AED102.6 million, or 2.85 fils per share, in the third quarter. Spinney’s share price has fallen 10.6 percent to AED1.52 since it listed on the Dubai Financial Market in June.

• Spinneys to build processing unit in Food Tech Valley
• Spinneys profit grows 18% with help from online sales
• Spinneys opens first Saudi supermarket in Riyadh

With over $100 billion worth of grocery-related initial public offerings (IPOs) expected by 2030, the market is gearing up for unprecedented growth, said Redseer Middle East managing partner Sandeep Ganediwalla.

“This surge in public listings is driven by rising investor interest, strong financial fundamentals, and the growing influence of digital platforms and modern retail formats. Companies such as Spinneys, Lulu, and Talabat are leading the charge,” he said.

On Thursday, Lulu Retail Holdings said its IPO was oversubscribed 25 times, generating demand of more than $37 billion, setting a record for a private sector IPO in the UAE.

The final offer price was set at AED2.04 per share, raising a total of $1.72 billion. Lulu shares will start trading on the Abu Dhabi Securities Exchange on November 14.