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Spinneys Q2 2026 EARNINGS PRESENTATION AUGUST 2026
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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 Q2 2026 EARNINGS PRESENTATION
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Contents 1. Financial and Operational Highlights 2. Update on Regional Challenges 3. Financial Highlights 4. Outlook and Strategic Focus 5. Guidance 6. Appendix
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Financial and Operational Highlights
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Financial and Operational Highlights Q2 2026 EARNINGS PRESENTATION Revenues was AED 1.9b for H1 2026, up 5.1% YoY Like-for-like sales growth of 1.9%, with adjusted EBITDA margin at 19.4% Profit after tax of AED 175m, up 2.5% YoY Ecommerce growth of 23.6% YoY, with participation at 19.1% Interim dividend of AED~122m, equivalent to 3.40 fils per share Resilient First-Half Performance amidst the ongoing situation
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H1 Financial and Operational Highlights Q2 2026 EARNINGS PRESENTATION Ecommerce Participation 20.6m 21.8m Transactions ▲ 6.1% Fresh Sales 64.3% 64.5% ▲20bps Private Label Penetration 44.7% 47.3% ▲ 260bps Average Basket Size AED 87.05 AED 86.40 ▼ 0.7% Store Footprint 83 93 ▲ 10 stores 16.2% 19.1% ▲ 290bps
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Continued Roll Out of New Stores Q2 2026 EARNINGS PRESENTATION 83 11 -1 93 H12025 Stores New Stores Store Closure/Transfer H12026 Stores H12025 – H12026 Stores Bridge 806 871 1,019 FY2024 H12025 H12026 Total GSA (incl. Abu Dhabi) – SQFT 000s +7.6% +16.9% 6.7% 15.7% 6.1% 10.7% 7.4% -5.4% Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Quarterly Like-for-Like Retail Revenue Growth
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Update on Regional Challenges
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Update on Regional Challenges Q2 2026 EARNINGS PRESENTATION Continuing to manage the impact of the regional conflict SALES: Sales growth returned following the reopening of schools and the return to in-person learning, alongside a recovery in office activity. This momentum drove post-Eid Al Adha sales above prior – year levels. ON-SHELF AVAILABILITY: We are demonstrating strong operational agility in navigating regional supply disruptions and complex freight dynamics helping manage stock levels, with total availability in the range of 83% - 88%. FREIGHT & PORTS: Sea cargo was successfully rerouted to other regional ports to avoid the Strait of Hormuz disruptions. This meant shipment delays were drastically reduced to 9 days in June, down from a peak delay of 38 days in March. INNOVATION: Successfully completed 26 road freight shipments from the UK/EU to the UAE, establishing a cost-effective, long-term alternative route for European medium shelf-life airfreight products. MARGINS: Input gross margins were stable despite supply chain cost pressures. RSP inflation adjustments were passed on strategically to partially offset rising freight and local supplier costs.
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Supporting Our Communities – Local Business Q2 2026 EARNINGS PRESENTATION The Chef’s Counter 20k transactions Extensive positive earned media coverage and community appreciation 10 chefs x 10 weeks bringing their products into our counters
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Supporting Our Communities – Colleagues Q2 2026 EARNINGS PRESENTATION Recruitment Drive No retrenchments during turbulent market conditions Large local recruitment drive with over 6500 local applications received filling 540 vacancies 332 Internal Promotions Jan - Jul 2026
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Financial Highlights
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Financial Highlights Q2 2026 EARNINGS PRESENTATION GROSS PROFIT AED753m +14.2% YOY ADJ. EBITDA AED365m +20.0% YOY FREE CASH FLOW1 AED226m 90.6% FCF Conversion NET DEBT2 AED 362m PROFIT BEFORE TAX AED202m +24.4% YOY H1 DIVIDEND AED 122m 3.40 Fils per Share PROFIT AFTER TAX AED 170m +16.2% YOY REVENUE AED1.8b +13.7% YOY 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. Total interest-bearing loans and borrowings plus lease liabilities minus cash and short -term deposits. REVENUE AED1.9b +5.1% YOY GROSS PROFIT AED784m +4.1% YOY ADJ. EBITDA AED369m +1.2% YOY PROFIT BEFORE TAX AED203m +0.5% YOY PROFIT AFTER TAX AED 175m +2.5% YOY FREE CASH FLOW1 AED194m 77.5% FCF Conversion NET DEBT2 AED 225m CASH AND BANK BALANCES AED 843m
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Q2 and H1 Financial Highlights – Retail Revenue Q2 2026 EARNINGS PRESENTATION • 11 stores opened and 1 closed • Mina Port Closed • LFL growth of 1.9% from existing stores • Online sales penetration increased to 19.1 % • Increase in Fresh Sales and Private Label penetration by 20bps and 260bps, respectively Retail Revenue (AED m) LFL Growth (%) 1 -5.4% 1.9% 1,790 34 63 -2 1,885 H1 2025 Retail Revenue Existing Stores New Stores Store Closure H1 2026 Retail Revenue 896 882 1,790 1,885 Q2 2025 Q2 2026 H1 2025 H1 2026 Notes: 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. -1.6% +5.3% H1 2025 – H1 2026 Retail Revenue Bridge (AED m)
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Financial Highlights – Gross Profit Q2 2026 EARNINGS PRESENTATION 378 377 753 784 Q2 2025 Q2 2026 H1 2025 H1 2026 Gross Profit (AED m) and GM % 41.6% 42.2% 41.5% 41.0% • 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 -0.2% +4.1% • 6M 2026: GP margin softened by 50 bps to 41.0% amid higher freight costs and inflationary pressures driven by extended transit times and ongoing logistical disruptions in the region. • Q2 2026 margin expanded 60 bps to 42.2% supported by utilisation of previously recognised inventory related provisions, partly offset by higher wastage and cost inflationary pressures. Gross margin (%)
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Financial Highlights – Adjusted EBITDA and Profit Q2 2026 EARNINGS PRESENTATION Profit for the Period (AED m) Adjusted EBITDA margin2 (%) • Profitability remained stable because of sourcing efficiency while impacted by gross margin compression and fixed cost elements such as depreciation, rental payout etc. Adjusted EBITDA1 (AED m) Profit for the period margin (%) 183 185 365 369 Q2 2025 Q2 2026 H1 2025 H1 2026 +1.3% +1.2% 20.1% 20.7%+60bps 20.1% 19.4%-70bps 85 88 170 175 Q2 2025 Q2 2026 H1 2025 H1 2026 +3.1% +2.5% 9.3% 9.8%+50bps 9.4% 9.1%-30bps Profit Before Tax (AED m) PBT margin (%) 11.0% 11.4% 11.1% 10.7%+40bps -40bps 100 102 202 203 Q2 2025 Q2 2026 H1 2025 H1 2026 +1.7% +0.5% 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.
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Financial Highlights – Free Cash Flow and Net Debt Q2 2026 EARNINGS PRESENTATION Free Cash Flow1 Evolution (AED m) 95.6% 77.5% 238 194 H1 2025 H1 2026 FCF conversion2 (%) Net Debt Evolution3 (AED m) 362 225 -681 -838 H1 2025 H1 2026 Net Debt Net 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 843m
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Strategic Focus
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Strategic Focus - Operations Q2 2026 EARNINGS PRESENTATION Expanding eCommerce reach Building our store portfolio Supply chain optimization We will continue with our Careem roll out during Q3 SPINNEYS ECOMMERCE Store openings are progressing as planned STORE OPENINGS Improve availability to pre conflict levels Continue optimizing landed cost considering new freight options SUPPLY CHAIN OPTIMIZATION
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First and Second store on track for Q1 2027 opening Majority of local appointments completed First sea shipments about to depart origin countries PHILIPPINES Strategic Focus - Expansion Q2 2026 EARNINGS PRESENTATION Commercial defining import and local product range First store opening estimated for Q1 2027 KUWAIT
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In a post reporting event Spinneys acquired a further 20% of issued capital increasing its shareholding to 70% Cash consideration of SAR 18 million The transaction increases Spinneys economic interest in the KSA operations which is already fully consolidated in the Company’s financial statements INCREASE IN SHAREHOLDING Strategic Focus - KSA Q2 2026 EARNINGS PRESENTATION The transaction deepens Spinneys’ presence in one of its key international markets
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2026 Guidance
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13.1% 10.7% 20.0% 3.4% 13 3 FY2025 (A) 2026 Guidance Q2 2026 EARNINGS PRESENTATION Revenue Growth % LFL Revenue Growth % Adj. EBITDA Margin % Capex as % of Revenue Store openings Store closures 9 – 11% FY2026 Guidance 6 - 8% 18 – 20.0% 3.5% - 4.0% 6 – 101 1 Notes: 1. Store Openings excludes Philippines and Kuwait. We will revisit the financial guidance during Q3 2026.
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Q&A
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Appendix
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Our Purpose Q2 2026 EARNINGS PRESENTATION Mr. Ali Saeed Juma Albwardy Chairman “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 day Strong link to food Holistic - nourish body, mind & soul It's personal for us, we treat our customers with personalized service We strive to be a pillar throughout our communities – the Spinneys family, our suppliers & our communities of customers Healthier, happier, more meaningful, tastier, more sustainable Ongoing, consistency & resilience Inspirations from our colleagues' journeys & focus on health, wellbeing, as well as indulgence
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Consolidated Statement of Profit and Loss Q2 2026 EARNINGS PRESENTATION AED ‘000 Q2 2026 Q2 2025 H1 2026 H1 2025 Revenue from contracts with customers 881,930 896,086 1,884,542 1,789,733 Rental income 13,217 13,583 24,796 26,395 Revenue 895,147 909,669 1,909,338 1,816,128 Cost of sales (517,653) (531,559) (1,125,596) (1,063,302) Gross profit 377,494 378,110 783,742 752,826 Other income 2,264 1,100 3,939 6,942 Selling, general and administrative expenses (194,352) (196,120) (418,193) (394,691) Depreciation and impairment of right-of-use assets (45,128) (45,039) (91,724) (89,365) Depreciation and impairment of property, plant and equipment (31,055) (29,986) (61,226) (57,126) Finance income 6,852 6,239 14,072 11,546 Finance costs (13,857) (13,825) (27,215) (27,773) Profit before tax 102,218 100,479 203,395 202,359 Income tax expense (14,532) (15,427) (28,875) (32,119) Profit for the period 87,686 85,052 174,520 170,240 Earnings per Share* (AED per share) 0.025 0.024 0.051 0.048 *Basic and diluted, profit for the period attributable to equity holders of the Company
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Consolidated Statement of Financial Position Q2 2026 EARNINGS PRESENTATION AED ‘000 30 June 2026 31 December 2025 ASSETS Non-current assets Property, plant and equipment 420,141 434,981 Intangible assets 34,000 34,000 Right of use assets Investment in an associate 901,953 4,782 871,834 - Other non-current assets 54.852 53,232 Deferred tax assets 1,118 1,200 Total Non-current Assets 1,416,846 1,395,247 Current assets Inventories 140,578 170,476 Trade receivable, prepayments and other receivables 92,661 89,048 Amounts due from related parties 4,395 4,619 Cash and short-term deposits 843,304 776,459 Total Current Assets 1,080,938 1,040,602 TOTAL ASSETS 2,497,784 2,435,849 EQUITY AND LIABILITIES Share capital 36,000 36,000 Restricted reserve 4,778 4,778 Retained earnings Own shares Own shares reserve 441,676 (16) (2,969) 388,997 (14) (2,551) Actuarial reserve 3,134 3,134 Foreign currency translation reserve 919 1,468 Equity Attributable to equity holders of the Company 483,522 431,812 Non-controlling interest (34,117) (26,013) Total Equity 449,405 405,799 LIABILITIES Non-current liabilities Interest-bearing loans and borrowings 4,627 5,118 Other non-current liabilities 22,020 18,794 Lease liabilities 868,457 845,206 Employees end of service benefits Deferred tax liability 87,685 1,147 87,230 1,147 Total Non-current Liabilities 983,936 957,495 Current liabilities Trade payable, accruals and other payables 763,108 807,581 Lease liabilities 194.433 184,478 Interest bearing loans and borrowings 793 808 Amounts due to related parties 16,872 18,790 Income tax payable 89,237 60,898 Total Current Liabilities 1,064,443 1,072,555 TOTAL LIABILITIES 2,048,379 2,030,050 TOTAL EQUITY AND LIABILITIES 2,497,784 2,435,849
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Consolidated Statement of Cash Flows Q2 2026 EARNINGS PRESENTATION AED ‘000 30 June 2026 30 June 2025 OPERATING ACTIVITIES Profit before tax 203,395 202,359 Adjustments to reconcile profit before tax to net cash flows: Net gain on disposal of property, plant and equipment (247) (47) Finance income (14,072) (11,546) Finance costs 27,215 27,773 Depreciation and impairment of PPE 61,226 57,126 Depreciation and impairment of ROU 91,724 89,365 Loss / (gain) on change in fair value of forward exchange contracts 2,261 (6,782) (Reversal)/Provision for old and obsolete inventories (8,485) 2,931 Gain on lease modifications and termination of leases (199) (378) Provision for employees’ end of service benefits 6,409 8,270 369,227 369,071 Working capital Adjustments: Inventories 38,383 17,828 Trade receivable, prepayments and other receivables (5,764) (13,518) Related party balances (1,682) (5,058) Trade payable, accruals and other payables (41,997) 37,207 358,167 405,530 Employees’ end of service benefits paid (5,972) (4,135) Interest paid (27,215) (27,773) Income tax paid (459) (931) Net cash flows from operating activities 324,521 372,691 INVESTING ACTIVITIES Purchase of property, plant and equipment (47,114) (52,391) Proceeds from disposal of property, plant and equipment and intangible assets 1,006 238 (Investments in)/Proceeds from redemption of short-term deposits, net (79,000) 44,000 Interest received Investment in an associate 12,740 (4,782) 9,323 - Net cash flows (used in)/ from investing activities (117,150) 1,170 FINANCING ACTIVITIES Dividends paid (129,600) (100,800) Repayment of principal portion lease liabilities (88,565) (76,056) Repayment of interest-bearing loans and borrowings (405) (390) Net cash flows used in financing activities (218,570) (177,246) NET (DECREASE)/ INCREASE IN CASH AND CASH EQUIVALENTS (11,199) 196,615 Cash and cash equivalents at 1 January 109,459 60,168 Net foreign exchange difference (956) (916) CASH AND CASH EQUIVALENTS AT 30 JUNE 97,304 255,867
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Thank you