Supply chain integration helped Spinneys post 1H growth

Supply chain integration and strong sourcing helped Spinneys weather 1H: DFM-listed Spinneys saw its bottom line grow 3.1% y-o-y to AED 87.8 mn despite a 1.6% dip in its revenues to AED 895.1 mn, according to its financial statements (pdf). A 2.6% downturn in the cost of sales and a 105.9% uptick in other income streams helped to offset the effect of the lower top-line result.

For 1H, its bottom line was up 2.5% to AED 174.5 mn on revenues of AED 1.9 bn, up 5.1%. Growth in like-for-like sales, new store openings, strong contributions from fresh (+64.5%) and private label (+47.3%) sales, and a 19.1% y-o-y uptick in online sales volumes all helped to boost its topline, Spinneys said in its earnings release (pdf). It also cited supply chain integration and rerouting, its sourcing model, and good inventory management as helping to keep availability levels strong at 83-88% despite the disruption to regional logistics.

Gross income margins softened slightly in 1H on the back of higher inflationary pressures and logistics costs due to the war, but were still up 4.1% y-o-y for the period.

Dividends: The board approved a payout of AED 122.4 mn, or 3.40 fils per share, for 1H.