Earnings release
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PRESS RELEASE Spinneys Spinneys Demonstrates Resilience with First - Half Revenue of AED 1.9 billion , Profit Growing 2.5 % : H1 Dividend of AED c.122 million H1 2026 revenue increased 5.1 % to AED 1.9 billion , driven by like - for - like sales growth , new store openings , increase in Online sales and higher penetration of Fresh and Private Label sales • Adjusted EBITDA of AED 369 million , up 1.2 % Profit for the period up 2.5 % to AED 175 million • 11 new stores opened across the UAE and Saudi Arabia over the last 12 months , taking gross selling area above 1 million square feet for the first time Spinneys ' integrated sourcing model and active mitigation measures ensured availability of products in the stores amidst the H1 2026 freight disruption and delays • Board approves interim dividend of AED 122.4 million , or 3.40 fils per share for H1 2026 • Post period end , Spinneys increased its shareholding in Spinneys KSA from 50 % to 70 % Dubai , UAE – 10 August 2026 : Spinneys ( “ Spinneys ” or the “ Company ” ) , the region's leading premium fresh food retailer , has announced its financial results for the three - month and six - month period ended 30 June 2026 . First - half revenues reached AED 1.9 billion , increasing 5.1 % vs. H1 2025 , driven by 11 new store openings since July 2025 , increased Fresh and Private Label sales , stable like - for - like growth , and higher Online penetration . Profit before tax remained stable at AED 203 million , with profit for the period increasing by 2.5 % to AED 175 million . Spinneys managed to keep availability levels strong thanks to its robust sourcing model and integrated supply chain which was able to withstand the freight complexities . Sunil Kumar , Chief Executive Officer at Spinneys , commented : " Our performance in the first half of 2026 underlines the resilience of the Spinneys business in a period of significant regional disruption , and demonstrates the strength of our integrated sourcing model in keeping shelves full and customers served across all of our markets . Even as supply chains came under pressure , our international sourcing offices , long - term partnerships , and disciplined inventory management enabled us to maintain strong availability to protect the customer experience , while continuing to deliver healthy top- and bottom - line results . At the same time , we chose to support our communities by launching a focused local hiring drive , reinforcing our commitment to creating sustainable employment and building capability in our core markets . We were also pleased with the successful launch of our chefs ' counter concept , which is designed to showcase and support local F & B companies , giving our customers access to differentiated , locally made food experiences that reflect the diversity and dynamism of the region . " " What continues to set Spinneys apart is our culture that our people live every day . Our willingness to step up , adapt quickly , and stay close to our customers has been central to our resilience through the first half of 2026 . Looking ahead to the remainder of the year , we remain focused on deepening our presence in our core markets , introducing our brand to new markets , and investing in local talent and partnerships so that we can create long- term , sustainable value for our customers , communities , and shareholders . " 1
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PRESS RELEASE 2 Financial Highlights AED (m) Q2 2026 Q2 2025 YoY Growth (%) H1 2026 H1 2025 YoY Growth (%) Revenue 895 910 -1.6% 1,909 1,816 5.1% Gross Profit 377 378 -0.2% 784 753 4.1% Adj. EBITDA1 185 183 1.3% 369 365 1.2% Profit Before Tax 102 100 1.7% 203 202 0.5% Profit 88 85 3.1% 175 170 2.5% Top-Line Growth with Resilient Profitability Revenue: Increased by 5.1% year-on-year, reaching AED 1.9 billion in the first six months of 2026. Top-line growth was driven by like-for-like sales growth of 1.9% and the opening of eleven new stores across the UAE and Saudi Arabia since July 2025, and particularly strong performance in Fresh (64.5%) and Private Label sales (47.3%), with penetration growing by 20bps and 260bps, respectively. Online sales penetration increased to 19.1% during the year, as compared to 16.2% in H1 2025. There was an impact on the sales during the regional conflict in March and April, however, sales gradually recovered post the school reopening. Profitability: Gross profit increased by 4.1% year-on-year to AED 784 million in the six months ended 30 June 2026, with a robust gross profit margin of 41.0% compared to 41.5% in 202 5, achieved through efficient sourcing and supply chain management and Spinneys’ highly successful Private Label strategy , which emphasizes high-margin products. There was a slight softening in the GP margin in H1 2026 amid higher freight costs and inflationary pressures driven by extended transit times and ongoing logistical disruptions in the region. Adjusted EBITDA totaled AED 369 million in the first half of 202 6, up 1.2% year-on-year, with an adjusted EBITDA margin2 of 19.4%, compared to 20.1% in 2025. Profit before tax remained stable at AED 203 million in the first half of 202 6 at a 10.7% profit before tax margin, while profit for the period increased by 2.5% to AED 175 million at a 9.1% profit margin. Transaction growth: Transaction volume grew by 6.1% year-on-year to 21.8 million in the first half of 2026, while the average basket size decreased slightly to AED 86.40. Operational Agility & Supply Chain Optimization Throughout the second quarter, Spinneys demonstrated strong operational agility in navigating regional supply chain disruptions and complex freight dynamics. Active mitigation strategies helped manage stock levels, with total availability in the range of 8 3% - 88% in the second quarter . Sales growth was supported by keeping customers satisfied with the availability of product substitutes when certain items were out of stock. 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. Complementing these maritime adjustments, Spinneys drove supply chain innovation by completing 26 road 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 margin: Adjusted EBITDA divided by revenue
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PRESS RELEASE 3 freight shipments from the UK /EU, establishing a permanent, cost -effective alternative transport corridor for European medium shelf-life products. 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. Gross margins remained stable in Q2 2026, supported by disciplined cost management and targeted pricing actions to offset freight and vendor inflation. Store Network Expansion Spinneys continued to successfully execute its growth strategy through the expansion of its store footprint . From 1 July 2025 to 30 June 2026 the Company opened 11 new stores in the UAE and Saudi Arabia, resulting in a significant increase in gross selling area crossing the 1 million square foot GSA for the first time. Supporting Our Communities Supporting communities has been a central priority for Spinneys during this disruptive period . The company launched a focused local hiring drive, creating new opportunities for people in their markets. In parallel, Spinneys introduced The Chef’s Counter, a new in -store platform that brings leading local chefs and food and beverage businesses into stores, giving them greater visibility, new revenue streams, and a direct connection to customers. Together, these initiatives reflect the businesses' belief that long-term success is built on standing alongside communities. Shareholding Increase in KSA In a post reporting event , disclosed to the DFM, Spinneys acquired a further 20% shareholding in Al-Ma’kulat al-Fakhirah for Food Products (“Spinneys KSA”) at a consideration of SAR 18 million, bringing its total shareholding to 70%. Board Approves Interim Dividend The Company’s Board of Directors has approved an interim dividend of AED 122.4 million, equivalent to 3.40 fils per share. The dividend is expected to be distributed in early September 2026. Business Outlook Spinneys delivered revenue and profit growth in the first half of 2026 despite a turbulent environment. Trading softened in the second quarter, and ongoing uncertainty requires a disciplined and cautious approach to operations. The Company’s positive momentum positions it well to benefit from a market recovery. To protect margins and support long-term shareholder value, Spinneys remains focused on cost management across the value chain. This includes optimizing logistics and supp ly chain operations to mitigate inflationary pressures, alongside strict control of discretionary capital and operating expenditure. Spinneys will continue its store expansion across core markets, as well as in newer markets including the Philippines and Kuwait. While conditions are expected to improve, the Company will reassess its full -year financial guidance in Q3 2026. -Ends-
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PRESS RELEASE 4 About Spinneys Spinneys’ story started in 1961 when the first grocery opened in Al Nasr Square , Dubai. It has since grown to become the leading premium fresh food retailer in the region, with 93 stores ( 81 owned and 1 2 operated, including Waitrose) across the UAE, Oman and Saudi Arabia. Much loved by expats and locals in the region, Spinneys enjoys a well-deserved reputation for forward thinking, keeping pace with changes in cooking trends and the emergence of new products worldwi de. Today, Spinneys has built a name for supplying top -quality produce and offering an elevated level of customer service. Food quality, safety and freshness have always been at the forefront of the Company’s ethos – just one reason the Spinneys brand is defined as ‘The fresher experience’ . www.spinneys.com Contact Investor Enquiries Media Enquiries Jean Jacque van Zyl Warwick Gird Investor Relations Officer General Manager - Marketing & E-commerce IR@spinneys.com communications@spinneys.com