Lulu Retail (Lulu), the largest and fastest growing pan GCC full line retailer, today announced a net profit from continuing operations of $216.2 million in FY 2024, up 12.6% YoY, with margins expanding by 20bps.

 

Q4 2024 net profit from continuing operations totaled $64.7 million, with net profit margin of 3.4%, the company said announcing its preliminary and unaudited financial results for the three-month and 12-month periods ended December 31, 2024.

 

Lulu Retail delivered solid revenue growth in Q4 2024, with revenue reaching $1.9 billion in the period, up 1.8% YoY. FY 2024 revenue increased by 4.7% YoY to $7.6 billion, with revenue growth driven by particularly strong performance in Oman and high-growth markets such as the UAE and Saudi Arabia, alongside broad-based growth across key product categories, the company said. 

 

Key Highlights:

• Good progress on new store rollouts, having opened a total of 21 new stores in 2024, including nine in Q4 2024, with the company operating a total of 250 stores as at December 31, 2024;

• Contribution from higher-margin Private Label products reached 29.6% of total retail revenue in FY 2024, a 110 bps increase YoY, with e-commerce sales up 70% YoY, representing 4.5% of total retail sales; 

• Lulu Happiness Loyalty programme membership now live across all GCC countries, with approximately 5.5 million members, driving improved customer engagement; 

• FY 2024 revenue growth of 4.7% YoY, with LFL growth increasing by 2.3% in period, mainly driven by higher footfall across stores;

• FY 2024 EBITDA increased by 4.4%, with margins of 10.32%, stable YoY, with gross margin expansion offset by higher lease expenses in KSA and Qatar; EBITDA margin post leases expanded by 118 bps to 6.3%

• The Board of Directors has recommended a dividend of $84.4 million, equating to 3 fils per share, reflecting Lulu Retail’s commitment to delivering shareholder value while maintaining financial flexibility to support future growth initiatives, in line with the company’s dividend policy;

• Record IPO on ADX in November 2024 raised $1.72 billion with total aggregate demand of $37 billion - an oversubscription level of 25 times; Lulu also achieved numerous industry awards in the 2024 period.

 

Saifee Rupawala, Chief Executive Officer of Lulu Retail, commented: “The past 12 months have been transformative for Lulu Retail, underpinned by our significantly oversubscribed IPO on the ADX and robust growth across all aspects of our business. Our focus on expanding our store network which now totals 250 stores across the GCC and investing in higher-margin categories, coupled with the rapid evolution of our e-commerce platform, has delivered strong results whilst our Happiness Loyalty Program, which now has over 5.5 million members, continues to elevate customer engagement, fostering deeper connections with our communities. As we look toward 2025, we remain confident in our ability to build on this momentum, leveraging our operational strength and market leadership to capture new opportunities and create lasting value for our investors and customers alike.”  

 

Continued progress on strategic growth pillars  

Lulu Retail’s growth strategy is focused on four key pillars: Enhancing its existing store network, expanding its store network, driving operational efficiencies and delivering revenue upside through Private Label and loyalty program expansion. The FY 2024 operational and financial performance is evidence of Lulu’s strong operating model and the Company’s continued progress on its strategic growth pillars. Lulu remains confident in delivering on its medium-term outlook, reinforcing its position as a growth-oriented, customer-centric market leader, maintaining its position as the largest full-line pan-GCC retailer, the company said.

 

       

Store Network

Lulu Retail continued to expand its store footprint in 2024, making good progress on its strategic growth pillar, having opened a total of 21 new stores in FY 2024. This was supported by the launch of nine new stores in Q4 2024 alone, in the form of seven express stores and two mini-markets, adding a total of 12,980 sq m of selling space. 

 

Over the 12-month period, Lulu introduced a total of six hypermarkets, 12 express stores, and three mini-markets, increasing total selling space by 5% YoY to 1.3 million sq m. Notably, the company recently celebrated a key milestone following the opening of its 250th store in Jabal Omar, a key religious landmark in Makkah in Saudi Arabia. Another landmark store in Madinah is expected to open in Q1 2025. Approximately 70% of Lulu stores opened in FY 2024 are within the express and mini-market store format, further supporting the company’s transition to an asset-light model.

 

As at the end of December 2024, Lulu operated a total of 117 hypermarkets, 109 express stores and 24 mini markets. New store rollouts remain a key focus area for Lulu, particularly across key high-growth focus markets such as the UAE and the Kingdom of Saudi Arabia, it said.  - TradeArabia News Service