Spinneys, the recently listed company on the Dubai Financial Market (DFM), has announced its financial results for the three-month period ending March 31, 2024.
The company reported a strong performance with revenue reaching AED815 million ($221.89 million), representing a year-on-year growth of 10.9 percent.
This increase in revenue was primarily driven by a rise in retail revenue, supported by healthy transaction numbers, which grew by 9.5 percent compared to the previous year.
Gross profit margin expansion through efficient operations
Spinneys reported a significant improvement in gross profit, which increased by over 15 percent year-on-year to reach AED336 million ($91.48 million) in the first quarter.
The company’s gross profit margin also demonstrated strength, reaching 41.2 percent in Q1 2024, a 150-basis point improvement compared to the prior year.
This margin expansion can be attributed to Spinneys’ effective sourcing and supply chain capabilities, as well as its successful private label strategy.
Read more: Spinneys’ IPO raises over $375 million, market capitalization hits $1.50 billion
Adjusted EBITDA increase despite IPO-related costs
The company’s adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) totaled AED151 million in Q1, showing a year-on-year increase of 8.7 percent.
However, the Adjusted EBITDA margin was impacted by one-off IPO-related costs of AED c.10 million and pre-store opening expenses in Saudi Arabia.
Despite these factors, Spinneys managed to maintain a solid Adjusted EBITDA margin of 18.5 percent, reflecting the company’s ability to generate strong operational performance.
Profit for the period shows steady growth
Spinneys reported a 12.8 percent year-on-year increase in profit for the period, reaching AED75 million.
The company achieved a net profit margin of 9.2 percent, representing an approximate 20 basis point improvement compared to the prior year.
This steady growth in profit highlights Spinneys’ ability to effectively manage its operations and optimize its financial performance.
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