Spinneys 1961 (SPINNEYS) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 reached AED 1,014 million, up 11.9% year-over-year, with like-for-like sales growth of 7.4% and profit after tax rising 1.9% to AED 87 million.

• E-commerce sales surged 34.9% year-over-year, now representing 18.8% of total sales.

• Store count expanded to 93, with community stores outperforming mall and office-based formats.

• Operations faced significant supply chain disruptions and shifts in consumer behavior due to regional conflict.

• Interim financials were reviewed by EY, with no material misstatements identified.

Financial highlights

• Gross profit rose to AED 406 million, with a gross margin of 40.1%, up 8.4% year-over-year.

• Adjusted EBITDA margin was 18.2% (AED 184 million), up 1.2% year-over-year.

• Profit after tax increased to AED 87 million, a 1.9% rise year-over-year.

• Free cash flow conversion was 62.9% (AED 130 million), supporting future dividends and growth.

• Cash and bank balances stood at AED 871 million.

Outlook and guidance

• 2026 guidance remains unchanged despite regional uncertainty; management remains committed to original targets.

• Revenue growth for FY2026 is projected at 9-11%, with like-for-like growth of 6-8%.

• Adjusted EBITDA margin guidance is 18-20%, and capex as a percentage of revenue is expected at 3.5-4.0%.

• Focus areas include supply chain optimization, cost efficiency, and strategic store openings, including expansion into the Philippines and Kuwait.

• Management expects moderate seasonal fluctuations due to Ramadan, holidays, and festive seasons.