Supermarket chain Spinneys to offer 70% of profit after tax as dividend

Supermarket chain Spinneys to offer 70% of profit after tax as dividend

"The dividend policy is designed to reflect the company's expectation of cash flows and expected long-term earnings potential, while allowing Spinneys to retain sufficient capital to fund ongoing operating requirements and continued investment for long-term growth."

Spinneys, which operates more than 70 outlets in the UAE, confirmed plans to float 25 per cent and then list on DFM. The subscription for the retail investor tranche starts April 23.

Spinneys, which has plans to expand its reach into Saudi Arabia shortly, says it is 'well-positioned to capitalise on the robust economic landscape of the UAE'. 

"While the UAE’s population is projected to grow at a CAGR (compound annual growth rate) of 0.7 per cent from 2022-28, the affluent population in the UAE is projected to grow faster, at a CAGR of 4.3 per cent from 2022-28, driving sustained demand for premium food in the UAE," it added. 

"The group is planning to expand into Saudi Arabia in 2024, the GCC’s largest economy, where the economy is expected to grow at a CAGR of 3.2 per cent from 2022 to 2028, with projected growth of affluent population CAGR of 6.4 per cent over the same period. Spinneys will focus on store openings