Dubai Retailer Celebrates First Interim Dividend Post-IPO Amid Revenue Surge
Shareholders of Spinneys will soon receive their first interim dividend since the company’s IPO, totaling Dh102.6 million, equivalent to 2.85 fils per share. This follows the retailer’s announcement of impressive financial results for the first half of 2024, with revenues reaching Dh1.6 billion, marking a 9.9% increase compared to the same period last year. The company’s profit also saw a significant rise, climbing by 15.2% to Dh146 million.
The grocery chain attributes its profit growth to strategic maneuvers and robust operational performance, despite the challenges posed by the 9% UAE corporate tax. A spokesperson for Spinneys stated, “Our focus on enhancing customer experience and expanding our product range has paid off significantly. We are pleased to share the fruits of our success with our shareholders through this interim dividend.”
In addition to the overall revenue and profit growth, Spinneys experienced a notable boost in its e-commerce sales. Online sales surged by 22%, reaching Dh217 million, and now account for 14% of the company’s total sales for the first half of 2024. This growth in the digital segment highlights the retailer’s successful adaptation to changing consumer behaviors and its investment in digital infrastructure.
The company has been proactive in expanding its online presence and improving its digital platforms to cater to the increasing demand for online grocery shopping.
The significant growth in e-commerce sales is a testament to Spinneys’ commitment to innovation and customer convenience.
Spinneys expects the interim dividend announcement to bolster investor confidence, reflecting the company’s strong financial health and ability to generate substantial returns for shareholders. As the retailer continues to navigate the competitive market, its focus remains on sustaining growth and enhancing value for its stakeholders.
Looking ahead, Spinneys aims to capitalize on market opportunities and strengthen its position as a leading retailer in the UAE. The company’s strategic initiatives and solid financial performance underscore its resilience and capacity for sustained growth in the dynamic retail landscape.
