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Q1 2025EARNINGS PRESENTATIONMAY 2025
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No statement in this document is intended to be nor may be construed as a profit forecast. Any statements made in this document which could be classed a “forward-looking” are based upon various assumptions, including, management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant risks, uncertainties and contingencies. Forward-looking statements are not guarantees of future performance. Risks, uncertainties, contingencies could cause the actual results of operations, financial condition and liquidity of the Company to differ materially from those results expressed or implied in the document by such forward-looking statements. No representation or warranty is made that any of these forward-looking statements or forecasts will come to pass or that any forecast result will be achieved. No reliance should be placed on any forward-looking statement. Disclaimer Q1 2025 EARNINGS PRESENTATION
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Contents1. Maintaining Momentum in 20252. Financial Highlights3. Outlook and Strategic Focus4. Guidance5. Appendix
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Maintaining Momentum in 2025
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Maintaining Momentum in 2025 Q1 2025 EARNINGS PRESENTATION Revenues hit record high of AED 906m for Q1 2025, up 11.3% YoYLike-for-like sales growth of 6.7%, with adjusted EBITDA margin at industry-leading 20.1%Profit before tax of AED 102m, up 23.2% YoYEcommerce growth of 26% YoY, with participation at 15.6%, up 1.9% YoY Profit after tax of AED 85m, up 14% YoY Carrying powerful momentum into 2025 with strong Q1 results
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Maintaining Momentum in 2025 Q1 2025 EARNINGS PRESENTATIONEcommerce Participation9.2m 9.9m Transactions ▲7.8% Fresh Sales63.0% 64.0%▲1%Private Label Penetration 43.0% 44.2%▲1.2% Average Basket SizeAED 89 AED 92▲2.9%Store Footprint 75 81▲8%13.7% 15.6%▲1.9%
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Financial Highlights
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Financial Highlights Q1 2025 EARNINGS PRESENTATIONGROSS PROFITAED375m+11.7% YOYADJ. EBITDAAED182m+20.6% YOYFREE CASH FLOW1AED120m96.9%FCF ConversionNET DEBT2AED 387mPROFIT BEFORE TAXAED102m+23.2% YOYCASH AND BANK BALANCESAED 660mPROFIT AFTER TAXAED 85m+14% YOYREVENUEAED906m+11.3% YOYNotes:1. FCF: Adjusted EBITDA +/- change in net working capital (NWC) +/- change in related party balances, minus purchase of property, plant and equipment, depreciation and impairment on right-of-use assets and interest on lease liabilities. 2. Total interest-bearing loans and borrowings plus lease liabilities minus cash and short-term deposits.
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Financial Highlights – Retail Revenue Q1 2025 EARNINGS PRESENTATION •10stores opened and 4closed•3 closed stores were temporary locations that were replaced by larger supermarkets•Increase in Fresh Sales and Private Label penetration by 1%and 1.2%, respectively•LFL growth of 6.7%from existing stores•Online sales penetration increased to 15.6 %•10stores opened and 4closed•3 closed stores were temporary locations that were replaced by larger supermarkets•Increase in Fresh Sales and Private Label penetration by 1%and 1.2%, respectively•LFL growth of 6.7%from existing stores•Online sales penetration increased to 15.6 % Retail Revenue (AED m)LFL Growth (%)16.7%803 53 46 -8 894 Q1 2024 Retail Revenue Existing Stores New Stores Store Closure Q1 2025 Retail RevenueQ1 2024 - Q1 2025 Retail Revenue Bridge (AED m)803894Q1 2024 Q1 2025Notes: 1 LFL: % change in revenues for stores generating monthly revenues over the 12 months in a given financial year, excluding stores closed during the period. +11.2%10.0%9.6%11.0% 11.0%6.7%Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025Like-for-Like Growth
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Financial Highlights – Gross Profit Q1 2025 EARNINGS PRESENTATION336 375 Q1 2024 Q1 2025Gross Profit (AED m) and GM %41.2%41.3%+11.7%Gross margin (%)•Efficient sourcing and supply chain, achieved through proximity to suppliers providing significant cost advantage•“Fresh premium” offering targeting affluent customers belonging to mid-high income socio-economic group – no comparable peer in the market •Successful private label strategy, underpinned by a strategic shift towards high margin products •Strong and unique brand reputation securing favorable supplier terms, optimizing both front- and back-end margins•Efficient sourcing and supply chain, achieved through proximity to suppliers providing significant cost advantage•“Fresh premium” offering targeting affluent customers belonging to mid-high income socio-economic group – no comparable peer in the market •Successful private label strategy, underpinned by a strategic shift towards high margin products •Strong and unique brand reputation securing favorable supplier terms, optimizing both front- and back-end margins Spinneys’ Secret Recipe for Best-in-Class Profitability•Overall margin increased due to increase in Fresh and Private Label penetrationoffset by lower margins in Saudi Arabia and higher wastage in new stores.•Overall margin increased due to increase in Fresh and Private Label penetrationoffset by lower margins in Saudi Arabia and higher wastage in new stores.
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Financial Highlights – Adjusted EBITDA and Profit Q1 2025 EARNINGS PRESENTATIONProfit for the Period (AED m)Adjusted EBITDA margin2(%)Adjusted EBITDA1(AED m)Profit for the period margin (%)151 182 Q1 2024 Q1 2025+20.6%18.5%20.1%+160 bps75 85 Q1 2024Q1 2025+14%9.2%9.4%+20bpsProfit Before Tax (AED m)PBT margin (%)10.2%11.2%+100bps+23.2 % Notes:1. Adjusted EBITDA is profit before tax plus depreciation and impairment of property, plant and equipment, depreciation and impairment of right-of-use assets, impairment of goodwill, finance costs minus finance income. 2. Adjusted EBITDA divided by revenue. 83 102 Q1 2024 Q1 2025•Impact on comparative period of one-off IPO related costs incurred in Q1 2024 amounting to AED 10m, and preopening expenses in Saudi Arabiaamounting to more than AED 3m •Impact of 6% additional tax on applicability of Pillar Two Rules which provides for a minimum tax of 15%, effective from January 2025, affects profit for the period vs. 2024•Impact on comparative period of one-off IPO related costs incurred in Q1 2024 amounting to AED 10m, and preopening expenses in Saudi Arabiaamounting to more than AED 3m •Impact of 6% additional tax on applicability of Pillar Two Rules which provides for a minimum tax of 15%, effective from January 2025, affects profit for the period vs. 2024
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Financial Highlights – Free Cash Flow and Net Debt Q1 2025 EARNINGS PRESENTATION Free Cash Flow1Evolution (AED m)109.5%96.9%109120Q1 2024 Q1 2025FCF conversion2(%)Net Debt Evolution3(AED m)480387-463-653Q1 2024 Q1 2025Net DebtNet Debt (excl. lease liabilities)Notes:1. FCF: Adjusted EBITDA +/- change in net working capital (NWC) +/- change in related party balances, minus purchase of property, plant and equipment, depreciation and impairment on right-of-use assets and interest on lease liabilities. 2. FCF conversion: FCF divided by Adjusted EBITDA (post lease related expenses). 3. Total interest-bearing loans and borrowings plus lease liabilities minus cash and short-term deposits.•> 99% of gross debt relates to lease liabilities •Self-funded growth with minimal financial debt on balance sheet•Cash and bank balances of AED 660m•> 99% of gross debt relates to lease liabilities •Self-funded growth with minimal financial debt on balance sheet•Cash and bank balances of AED 660m
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Outlook and Strategic Focus
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2025 Outlook and Strategic Focus Q1 2025 EARNINGS PRESENTATIONImproving our production and logistics capabilities Building our store portfolio Upgrading our customer experienceUAE•Launch 10 new stores, with 2 stores featuring the Kitchen concept KSA•Continue to grow Saudi business at a steady pace, with 1 new store opening in Riyadh, and 1 store in JeddahREFURBISHMENTS•Planning to refurbish 6 supermarkets•Adding 3 Spinneys Cafés•Continue to invest in existing stores to deliver outstanding in-store experience FOOD TECH VALLEY FACTORY•Plot lease signed and master plan design under progress, first phase planned to launch in 2027SPINNEYS SWIFT•We are continuing to widen our delivery coverage in UAE while upgrading the customer app and enhancing ordering convenience
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2025 Outlook and Strategic Focus Q1 2025 EARNINGS PRESENTATION SELF SUFFICIENCYKey to our success has been our ability to source products direct from growers and manufacturers INTERNATIONAL SOURCING•Leverage strategic relationships to strengthen direct sourcing capabilities and exploring international food trends in new territories•This enables higher on-shelf availability and higher marginsPRIVATE LABEL•Continue to drive private label strategy to sustain market share and higher margins, as well as brand equity
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2025 Guidance
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FY2024 (A)2025 Guidance Q1 2025 EARNINGS PRESENTATIONRevenue Growth %12.3%9-11%FY2025 (E)LFL Revenue Growth %11.3%4-6%Adj. EBITDA Margin %19.5%19-20%Capex as % of Revenue3.5%3.5-4.5%Store openings 7 10-12Store closures2 211.3%Q12025 (A)6.7%20.1%2.4%32
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Q&A
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Appendix
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Our Purpose Q1 2025 EARNINGS PRESENTATION Mr. Ali Saeed Juma AlbwardyChairman“We don’t want to be the biggest retailer, we want to be the best retailer” To nourish and inspire our communities to live better lives, day by dayStrong link to foodHolistic - nourish body, mind & soulIt's personal for us, we treat our customers with personalized serviceWe strive to be a pillar throughoutour communities – the Spinneysfamily, our suppliers & ourcommunities of customersHealthier, happier, more meaningful, tastier, more sustainableOngoing, consistency& resilienceInspirations from our colleagues'journeys & focus on health,wellbeing, as well as indulgence
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Consolidated Statement of Profit and Loss Q1 2025 EARNINGS PRESENTATION Q1 2024Q1 2025AED ‘000803,391893,647Revenue from contracts with customers11,36512,812Rental income814,756906,459Revenue(479,160)(531,743)Cost of sales335,596374,716Gross profit3,0485,842Other income(187,804)(198,571)Selling, general and administrative expenses(39,822)(44,326)Depreciation and impairment of right-of-use assets(18,050)(27,140)Depreciation and impairment of property, plant and equipment1,8275,307Finance income(12,095)(13,948)Finance costs82,700101,880Profit before tax(7,995)(16,692)Income tax expense74,70585,188Profit for the period0.0210.025Earnings per Share* (AED per share)*Basic and diluted, profit for the period attributable to equity holders of the Company
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Consolidated Statement of Financial Position Q1 2025 EARNINGS PRESENTATION 31 December 202431 March 2025AED ‘000ASSETSNon-current assets425,792421,064Property, plant and equipment34,00034,000Intangible assets923,749895,482Right of use assets56,04555,451Other non-current assets1,0991,100Deferred tax assets1,440,6851,407,097Total Non-current AssetsCurrent assets157,111158,257Inventories55,08655,768Trade receivable, prepayments and other receivables3,7658,320Amounts due from related parties536,168659,561Bank balances and cash752,130881,906Total Current Assets2,192,8152,289,003TOTAL ASSETSEQUITY AND LIABILITIES36,00036,000Share capital4,7784,778Restricted reserve267,825255,633Retained earnings6,1446,144Actuarial reserve788968Foreign currency translation reserve315,535303,523Equity Attributable to equity holders of the company(16,316)(19,761)Non-controlling interest299,219283,762Total EquityLIABILITIESNon-current liabilities5,5075,488Interest-bearing loans and borrowings14,59114,636Other non-current liabilities886,736860,076Lease liabilities79,17279,929Employees EOS benefits986,006960,129Total Non-current LiabilitiesCurrent liabilities677,666793,182Trade payable, accruals and other payables173,657180,495Lease liabilities751775Interest bearing loans and borrowings23,63222,862Amounts due to related parties31,88447,798Income tax payable907,5901,045,112Total Current Liabilities1,893,5962,005,241TOTAL LIABILITIES2,192,8152,289,003TOTAL EQUITY AND LIABILITIES
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Consolidated Statement of Cash Flows Q1 2025 EARNINGS PRESENTATION 31 March 202431 March 2025AED ‘000OPERATING ACTIVITIES82,700101,880Profit before taxAdjustments to reconcile profit before tax to net cash flows:(189)(223)Net gain on disposal of property, plant and equipment(1,827)(5,307)Finance income12,09513,948Finance costs18,05027,140Depreciation and impairment of PPE39,82244,326Depreciation and impairment of ROU4,143(6,255)(Gain) / loss on change in fair value of forward exchange contracts(1,729)1,978Provision for old and obsolete inventories-(217)Gain on termination of leases6,6912,816Provision for employees’ end of service benefits159,756180,086Working capital Adjustments:9,325(3,124)Inventories3,6922,408Trade receivable, prepayments and other receivables(1,500)(5,220)Related parties' balances18,81318,520Trade payable, accruals and other payables190,086192,670(1,040)(2,167)Employees’ end of service benefits paid(127)(104)Interest paid(316)(778)Income tax paid188,603189,621Net cash flows from operating activitiesINVESTING ACTIVITIES(22,375)(21,695)Purchase of property, plant and equipment 417223Proceeds from disposal of property, plant and equipment and intangible assets(100,000)59,000Proceeds from/ (investment in) short-term deposits1,8275,307Interest received(120,131)42,835Net cash flows from/ (used in) investing activitiesFINANCING ACTIVITIES(53,071)(49,517)Repayment of lease liabilities(100)(194)Repayment of loans and borrowings(53,171)(49,711)Net cash flows used in financing activities15,301182,745NET INCREASE IN CASH AND CASH EQUIVALENTS354,06160,168Cash and cash equivalents at 1 January221(352)Net foreign exchange difference369,583242,561CASH AND CASH EQUIVALENTS AT 31 March
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Thank you