Spinneys 1961 Holding

1. Company Overview & Earnings Context

Spinneys 1961 Holding PLC is a Dubai Financial Market-listed premium fresh food retailer, operating supermarkets across the UAE, Oman and Saudi Arabia. The company was listed on the DFM in May 2024.

Spinneys delivered resilient H1 2026 results, with revenue reaching AED 1.91 billion, supported by like-for-like sales growth, new store openings, higher online penetration and stronger Fresh and Private Label sales.

2. Financial Performance Snapshot

• Revenue: AED 1.91 Billion (+5.1% YoY)

• Gross Profit: AED 783.74 Million (+4.1% YoY)

• Adjusted EBITDA: AED 369 Million (+1.2% YoY)

• Profit Before Tax: AED 203.40 Million (+0.5% YoY)

• Net Profit: AED 174.52 Million (+2.5% YoY)

• Profit Attributable to Equity Holders: AED 182.21 Million (+4.5% YoY)

• Earnings Per Share (EPS): AED 0.051 (+6.3% YoY)

Compared with H1 2025:

• Revenue increased from AED 1.82 billion to AED 1.91 billion.

• Gross profit increased from AED 752.83 million to AED 783.74 million.

• Adjusted EBITDA increased from approximately AED 365 million to AED 369 million.

• Profit before tax increased slightly from AED 202.36 million to AED 203.40 million.

• Net profit increased from AED 170.24 million to AED 174.52 million.

• EPS increased from AED 0.048 to AED 0.051.

3. Operational Highlights & Key Metrics

• Like-for-Like Sales Growth: +1.9%

• Transaction Volume: 21.8 Million (+6.1% YoY)

• Online Sales Penetration: 19.1%, up from 16.2%

• Fresh Sales Penetration: 64.5%

• Private Label Sales Penetration: 47.3%

• New Stores Opened: 11 across the UAE and Saudi Arabia since July 2025

• Gross Selling Area: More than 1 Million sq. ft.

• Gross Profit Margin: 41.0%

• Adjusted EBITDA Margin: 19.4%

• Net Profit Margin: 9.1%

4. Key Performance Drivers

Revenue growth was driven by 1.9% like-for-like sales growth, 11 new store openings across the UAE and Saudi Arabia, and strong Fresh and Private Label performance. Fresh penetration reached 64.5%, while Private Label penetration increased to 47.3%. Online penetration also expanded to 19.1% from 16.2% in H1 2025.

Profitability remained resilient despite higher freight costs and regional logistical disruptions. Gross profit increased 4.1% YoY to AED 784 million, although gross margin moderated to 41.0% from 41.5%. Adjusted EBITDA increased 1.2% to AED 369 million, with its margin easing to 19.4% from 20.1%.

5. Outlook & Forward Guidance

Spinneys remains focused on deepening its presence in its core markets, entering new markets and investing in local talent and partnerships. The company continued expanding its store footprint, with 11 new stores opened across the UAE and Saudi Arabia over the 12 months to June 2026.

The company also disclosed that, after the reporting period, it increased its shareholding in Spinneys KSA from 50% to 70%, strengthening its exposure to the Saudi Arabian market.

6. Investor Takeaway

Spinneys delivered steady H1 2026 growth, with revenue increasing 5.1% to AED 1.91 billion and net profit rising 2.5% to AED 174.5 million despite regional supply-chain and freight disruptions. Growth in transactions, online penetration, Fresh and Private Label sales, together with continued store expansion, supported the top line.

However, profitability grew more slowly than revenue, with the gross margin easing to 41.0% and adjusted EBITDA margin to 19.4%, making margin performance an important area to monitor. The Board also approved an H1 2026 interim dividend of AED 122.4 million, equivalent to 3.40 fils per share.