Revenue Increases by 11.4% with Profit Before Tax Growing by 27.1%.
Spinneys has come out with its nine-month results until 30th September 2024. It highlighted outstanding performance in revenue metrics along with healthy growth in profit metrics, which actually were very impressive. The group reported AED 2.3 billion of total revenue during the nine months, where revenue was up 11.4%. Such figures indicate the promising financial condition Spinneys had in this nine-month period.
PC: wam.ae
The profit before tax demonstrated a notable rise, increasing by 27.1% to reach AED 203 million. Likewise, profit for the period showed a solid improvement, amounting to AED 182 million, reflecting a 14.6% increase. This impressive financial performance highlights the strong emphasis management has placed on achieving operational efficiency, contributing to an admirable margin profile. The robust margins underscore the success of management strategies and their unwavering commitment to accelerating improvements related to operations and overall performance.
Sunil Kumar, Chief Executive Officer at Spinneys said, “We are pleased to report very robust year-to-date performance with revenues growing to record levels and strong profitability metrics both before and after tax. All at Spinneys remain firmly committed to delivering on our ambitious growth plans as we widen our footprint in the UAE, accelerate our expansion in Saudi Arabia, roll-out new concepts and deepen our ecommerce offering.”
Gross Profit Margin Stability and Growth
For the first nine months of 2024 thus far, Spinneys has made a gross profit of AED 948 million, attaining a strong growth of 12 percent during the same period last year. This growth has thus enabled the company to maintain its gross profit margin at 41.2 percent through smart and strategic sourcing and effective management of supply chains. For example, private labels had been featured by Spinneys as a central strategy, where one sells only high-margin products; the gross margin could thus be better supported and stabilised.
This extraordinary performance illustrates that Spinneys had the success of seizing operational efficiencies and delivering quality products for careful management of costs. This growth can be sustained in line with the increase in new concepts developed by Spinneys and also by expanding its e-commerce business, promising new avenues for growth, not only within the UAE but also into the Saudi Arabian market.
