Page 265 - SOBHA REALTY PR REPORT - AUGUST 2024

8/9/24, 1:35 PM Spinneys announces first post-IPO dividend of Dh102.6m after record H1-2024 revenues | Markets – Gulf News

“During the first-half of the year, we made a number of important steps in the execution of our strategy, expanding our

footprint by opening four new stores including our new innovative foodhall concept, e Kitchen, by Spinneys," said

Sunil Kumar, CEO. "We also opened our first-ever store in Saudi Arabia, entering a compelling market where we see

immense potential for growth."

" e La Strada Yard store in Riyadh has already experienced an exceptional response from customers, highlighting the

strong demand that exists for our offering, with early performance reinforcing our already very positive outlook for

Spinneys in the Kingdom."

While our focus remains on the Kingdom, the UAE and

Oman, we will not say 'No' to any opportunity that arises in

new markets. But that's not a priority. ’’

- Sunil Kumar of Spinneys
While initial results from its first Saudi store are ‘beyond expectations’, Spinneys is gearing for a second location, which

will be at the King Abdulaziz Financial District, most likely to be in October. A third will follow before the end of 2024.

" e entry into Saudi Arabia is a key milestone for Spinneys, given our heritage of 100 plus years," said Kumar. "While our

focus remains on the Kingdom, the UAE and Oman, we will not say 'No' to any opportunity that arises in new markets.

But that's not a priority."

On whether Spinneys will take to ecommerce channels in Saudi Arabia soon, the CEO said that's a live possibility.

Initially, rather than launch its own branded online and delivery platform. Instead, it will tap third-party ecommerce

operators to do the needful. (Analysts reckon that Spinneys will be on to a good thing if the Saudi online sales channels

are activated at the earliest, and leveraging the name recognition the brand enjoys in the physical retail space.)

9.2

Spinneys' net pro{t margin Spinneys’
net pro{t margin, which is a 50 basis
point improvement from a year ago.

Spinneys had 79 stores as of end June. e new store openings were 'partially offset by the closure of two locations in the

corresponding period of the previous year'.

"Spinneys remains committed to expanding its store footprint, with a healthy pipeline of new locations planned in the

UAE, as well as in Saudi Arabia," said a statement.

'H g in' ki hen

And then through e Kitchen, by Spinneys (located at e Dubai Mall), the company targets 'margins well above grocery

retail margins' and with further locations set to open in the UAE later this year.

Having got a taste of the cloud kitchen concept, Spinneys will recreate a second location in Dubai, at the Creek Harbour.

It will be of similar proportions, between 400-600 square metres as the Dubai Mall one. "We will look to have more
locations, whether in office towers or within a location such as the Sobha District," said the CEO. " ese could even be

within 200 square metres in terms of space needed."

Sign up for the Daily Briefing

Get the late st new s and update s stra ight to yo ur inbox .

Email address Sign up

https://gulfnews.com/business/markets/spinneys-announces-first-post-ipo-dividend-of-dh1026m-after-record-h1-2024-revenues-1.1723094191193 2/9