Lulu Retail, a leading regional retailer, announced a $1.86 billion revenue for the third quarter of 2024, marking a 6.1% year-on-year growth. The update, released Thursday, is the company’s first financial disclosure since its record-setting IPO and ADX listing on November 14.
The robust performance was attributed to significant growth across key markets, including the UAE, Saudi Arabia, and Kuwait, and strong sales in fresh food and electrical goods categories.
Revenue and Profit Surge
Like-for-like (LFL) sales rose 1.2% in Q3 to $1.7 billion and increased 2.2% to $5.3 billion for the nine-month period. Lulu also expanded its footprint with 12 new stores opened in 2024, including three in the third quarter. By September, the company operated 241 stores with a total selling area of 1.3 million square meters.
The company’s EBITDA climbed 9.9% year-on-year to $176.3 million in Q3, driven by a 130-basis-point expansion in gross margins. The shift toward higher-margin categories, including private label products, contributed significantly. These products now account for 29.3% of total sales, up from 28.6% in Q3 2023.
Net profit from continuing operations surged to $35.1 million in Q3, reflecting a 126% increase. For the nine-month period, net profit rose 73.3% to $151.5 million.
Regional Growth
The UAE led the way with a 7.5% revenue increase in Q3, bolstered by a 4.7% rise in LFL sales and three new store openings.
In Saudi Arabia, revenue grew 5.7% to $369.3 million, driven by tailored product offerings in fresh food. The kingdom saw five new stores, including two hypermarkets, two express stores, and one mini market.
Other GCC markets, including Oman, Kuwait, and Bahrain, recorded strong revenue growth, while Qatar maintained its leading market share position.
E-Commerce Expansion
Lulu’s e-commerce sales surged 83.5% year-on-year during the nine-month period, reaching $237.4 million and representing 4.3% of total retail sales.
Investments and Future Plans
Capital expenditure for the nine months totaled $98.5 million, primarily for opening 12 new stores in Saudi Arabia and the UAE. The company is shifting toward an asset-light model to reduce capital intensity.
Post-period, Lulu announced a partnership with Abu Dhabi’s Modon Holding to develop retail facilities, adding five more stores, bringing the 2024 total to 17.
Yusuffali MA, Lulu’s chairman, highlighted the company’s adaptability and growth potential:
“The flexibility of our three-store format and growing e-commerce presence allows us to thrive in diverse communities across the GCC.”
CEO Saifee Rupawala reiterated the company’s optimistic outlook, citing ongoing promotional campaigns and increased holiday footfall as factors for continued growth in Q4.
