Spinneys H1 profit rises 2.5% to Dh175 million; approves Dh122 million dividend

12/08/2026 05:10 AST

Spinneys reported a 2.5 per cent increase in first-half profit to Dh175 million and approved an interim dividend of Dh122.4 million, as new store openings and higher online and fresh-food sales helped lift revenue.

Revenue for the six months ended June 30 rose 5.1 per cent to Dh1.91 billion, from Dh1.82 billion a year earlier. Adjusted EBITDA increased 1.2 per cent to Dh369 million, while profit before tax was broadly stable at Dh203 million.

The board approved an interim dividend of 3.40 fils per share, equivalent to Dh122.4 million, which is expected to be distributed in early September.

First-half revenue growth was driven by a 1.9 per cent increase in like-for-like sales, the opening of 11 stores across the UAE and Saudi Arabia since July 2025, and increased penetration of fresh products, private-label goods and online sales.

Online sales accounted for 19.1 per cent of sales, up from 16.2 per cent in the first half of 2025. Fresh products represented 64.5 per cent of sales and private-label products 47.3 per cent.

11 new stores lift selling space above one million sq ft
Spinneys opened 11 new stores in the UAE and Saudi Arabia between July 2025 and June 2026, taking its gross selling area above one million square feet for the first time.

Transaction volumes increased 6.1 per cent to 21.8 million during the first half, although the average basket size edged down to Dh86.40.

Gross profit rose 4.1 per cent to Dh784 million, while the gross margin eased to 41 per cent from 41.5 per cent as higher freight costs and longer transit times put pressure on margins.

Sunil Kumar, Chief Executive Officer of Spinneys, said the first-half performance demonstrated the resilience of the retailer's sourcing model during a period of regional disruption.

He said international sourcing offices, long-term supplier relationships and inventory management helped the company maintain product availability while continuing to grow revenue and profit.

Spinneys reroutes shipments amid freight disruption
The retailer rerouted sea cargo through alternative regional ports to avoid disruption around the Strait of Hormuz, reducing shipment delays to nine days in June from a peak of 38 days in March.

It also completed 26 road-freight shipments from the UK and European Union, establishing an alternative route for European products with medium shelf lives.

Second-quarter revenue declined 1.6 per cent year-on-year to Dh895 million, although quarterly profit increased 3.1 per cent to Dh88 million. Adjusted EBITDA rose 1.3 per cent to Dh185 million.

Saudi stake rises to 70%
After the reporting period, Spinneys acquired an additional 20 per cent stake in Spinneys KSA for SAR18 million, increasing its ownership from 50 per cent to 70 per cent.

The company said it would continue expanding in its core markets and enter newer markets including Kuwait and the Philippines.

Spinneys said it expects conditions to improve but will reassess its full-year financial guidance during the third quarter of 2026

Khaleej Times