Spinneys has surpassed Dh1 billion in sales amid ongoing regional tensions linked to conflict conditions in the Middle East.
Spinneys crossed Dh 1 billion in revenue in the first quarter of 2026, even as regional conflict disrupted freight routes and slowed consumer activity in March.
Spinneys, listed on the Dubai Financial Market, reported revenue of over Dh 1 billion for the three months ended March 31, up 11.9% from Dh 906 million a year earlier.
Profit for the period rose 1.9% to Dh87 million, while profit before tax remained largely stable at Dh101 million.
The results come amid heightened focus on food security and supply chain resilience across the Gulf region.
War-related disruptions across parts of the region in March highlighted the reliance of modern food systems on global shipping routes, freight corridors, and stable logistics networks.
Spinneys CEO Sunil Kumar said: “Our strong first-quarter performance, delivered against a backdrop of regional uncertainty, is a testament to the resilience of our business model and the commitment of our people across the region.”
Spinneys said: “Our strong revenue, profitability and store footprint in these conditions underscore the strength of our customer relationships and the advantages of our integrated sourcing and supply chain.”
Retail trends amid conflict
In the United Arab Emirates, where most food products are imported, retailers and distributors have increasingly strengthened stockpiling strategies, diversified sourcing, and local supply partnerships in recent years—first after COVID-19 disruptions and now amid regional conflict—to reduce the risk of shortages during supply chain shocks.
Spinneys said its sourcing and supply chain systems helped it maintain product availability despite freight and logistics complexities during the quarter.
The company said sales growth was driven by strong demand for fresh food and private label products, alongside rising online grocery sales and expansion through new store openings.
Spinneys has opened 13 new stores across the United Arab Emirates and Saudi Arabia since April 2025, including three new outlets during the first quarter of 2026.
What helped
Spinneys reported that online sales continued to grow strongly, accounting for 18.8% of revenue during the quarter, up from 15.6% a year earlier.
However, the company noted that sales momentum softened in March as regional conflict disrupted consumer movement and supply routes, temporarily affecting trading conditions across the United Arab Emirates and surrounding markets.
Spinneys CEO Sunil Kumar said the company was relatively insulated from disruption because around 88% of its stores are located in residential communities rather than tourist or office-heavy areas, reducing the impact of regional conflict on its operations.
The company reported that transaction volumes rose 8.5% year-on-year to 10.8 million during the quarter, while the average basket size increased to Dh92.9 from Dh89.9 a year earlier.
Gross profit increased 8.4% to Dh406 million, although the gross profit margin narrowed to 40.1% from 41.3% in Q1 2025. Adjusted EBITDA also rose 1.2% to Dh184 million.
Not without challenges
Spinneys said March was particularly challenging for its supply chain operations due to freight disruptions and volatility across regional trade corridors in the United Arab Emirates and surrounding markets.
To mitigate the impact, the retailer activated contingency measures including diversified sourcing, forward buying of essential goods, and closer coordination with logistics partners.
The company also launched initiatives such as “The Chef’s Counter” to support local chefs and food businesses facing financial pressure during the period.
Looking ahead, Spinneys said uncertainty linked to regional dynamics makes it difficult to provide a firm outlook for the remainder of 2026. It added that it is focusing on tighter cost control, logistics efficiency, and disciplined spending to protect margins amid ongoing economic uncertainty.
