Lulu Retail achieved a revenue milestone of $1.86 billion in the third quarter of 2024, reflecting a 6.1% year-on-year growth, as announced by the company. This marks its first financial update since its record-breaking IPO and listing on the ADX in November 2024.
Strong Sales Performance
The growth was fueled by strong sales across major markets like the UAE, Saudi Arabia, and Kuwait, with significant contributions from categories such as fresh food (double-digit growth) and electrical goods (mid to high single-digit growth).
Like-for-like (LFL) sales increased by 1.2% in Q3, reaching $1.7 billion, while LFL sales for the nine months rose 2.2% to $5.3 billion.
Store Expansion
Lulu opened 12 new stores in the first nine months of 2024, with three launched in Q3. By the end of September, the retailer operated 241 stores across 1.3 million square meters of selling space.
Financial Highlights
EBITDA for Q3 2024 rose to $176.3 million, a 9.9% increase driven by better product mix and higher sales in private-label items, which now represent 29.3% of total sales (up from 28.6% in Q3 2023).
Net profit for Q3 2024 grew to $35.1 million, a 126% increase, due to improved operations and cost management. For the nine-month period, net profit surged 73.3% to $151.5 million.
Regional Growth Highlights
- UAE: Revenue rose 7.5%, supported by LFL growth of 4.7% and market tailwinds. Three new stores were opened in 2024.
- Saudi Arabia: Revenue grew 5.7% to $369.3 million, driven by demand for fresh products. Five new stores were opened, including hypermarkets, express stores, and mini-markets.
- Oman, Kuwait, and Bahrain recorded robust growth, while Qatar maintained stable revenue and market leadership.
Omnichannel and E-commerce
Lulu’s focus on omnichannel strategies paid off, with e-commerce sales reaching $237.4 million, an 83.5% increase year on year. E-commerce now accounts for 4.3% of total sales.
Investments and Financial Stability
- Capital expenditure totaled $98.5 million, focusing on store openings in the UAE and Saudi Arabia. Capex represented 1.7% of total sales, down from 1.9% in 2023 due to a shift toward an asset-light model.
- Net debt stood at $2.54 billion with a strong position to support future growth.
Loyalty Program and Partnerships
The Happiness Loyalty Program now has five million members across the GCC. Post-Q3, Lulu announced a partnership with Modon Holding to develop new retail facilities, including hypermarkets and supermarkets.
Lulu also opened five additional stores after September, bringing the total store openings in 2024 to 17.
Leadership Insights
Yusuffali MA, Chairman, said:
“The growth of nations across the GCC is driving Lulu’s success. Our flexible store formats and expanding e-commerce enable us to cater to diverse communities. We’re excited to continue this journey as a listed company, delivering value to investors and customers alike.”
Saifee Rupawala, CEO, added:
“We’re pleased with the growth in revenue and profit, driven by strategic expansions and customer-focused efforts. As we enter the fourth quarter, we anticipate further growth supported by promotions and holiday shopping trends.”
