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Earnings Report

Spinneys 1961 Holding

Q1 26 NEUTRAL LOW Impact

1. Company Overview & Earnings Context

Spinneys 1961 Holding PLC reported a resilient Q1 2026 performance despite regional conflict disruption during March 2026, supported by strong like-for-like sales growth, new store openings, higher online penetration, and continued demand for fresh and private label products.

The company highlighted that its integrated sourcing model and supply chain resilience helped maintain product availability and operational continuity during regional freight and logistics disruptions.

2. Financial Performance Snapshot

  • Revenue: AED 1.01B (+11.9% YoY)

  • Gross profit: AED 406M (+8.4% YoY)

  • Adjusted EBITDA: AED 184M (+1.2% YoY)

  • Profit before tax: AED 101M

  • Net profit: AED 87M (+1.9% YoY)

  • Adjusted EBITDA margin: 18.2%

3. Operational Highlights & Key Metrics

  • Like-for-like sales growth: 7.4%

  • Transaction volume growth: 8.5% YoY

  • Transactions completed: 10.8M

  • Average basket size: AED 92.9

  • Online sales penetration: 18.8% (vs 15.6% YoY)

  • Fresh category penetration growth: +0.6%

  • Private label penetration growth: +1.9%

  • Store network expansion:

    • Opened 13 new stores since Q1 2025

    • Total store count reached 93

  • Balance sheet & liquidity:

    • Total assets: AED 2.43B

    • Total equity: AED 361M

    • Cash & short-term deposits: AED 871M

    • Inventories: AED 136M

    • Lease liabilities: AED 996M

  • Cash flow generation:

    • Net cash flow from operating activities: AED 158M

    • Free cash flow conversion rate: 62.9%

4. Key Performance Drivers

  • Strong like-for-like sales growth across existing stores

  • Contribution from 13 new store openings across UAE and Saudi Arabia

  • Higher online sales penetration and digital engagement

  • Continued growth in fresh and private label product categories

  • Resilient supply chain and sourcing capabilities during regional disruptions

  • Stable customer demand supported by community-focused store locations

5. Outlook & Forward Guidance

  • Continued focus on:

    • Expanding store footprint across UAE and Saudi Arabia

    • Increasing online and digital penetration

    • Strengthening private label and fresh product offerings

    • Maintaining supply chain resilience and operational efficiency

  • Management highlighted:

    • Continued investment in sourcing diversification and logistics coordination

    • Confidence in the company’s community-based retail positioning

    • Ability to continue balancing growth investments with strong cash generation and dividend capacity

6. 🧾 Investor Takeaway

Spinneys delivered a resilient Q1 2026 performance with strong revenue growth, stable profitability, and continued expansion across stores and digital channels, while demonstrating operational resilience and supply chain strength amid regional market disruptions.