A. SREENIVASA REDDY (ABU DHABI)
Lulu Retail on Wednesday announced its financial results for the second quarter and the first half of 2025, reporting revenue of $4.1 billion in H1 2025, up 5.9% year-on-year (YoY), and $2 billion in Q2 2025, an increase of 4.6% YoY.
The growth in the first half was underpinned by like-for-like sales expansion of 3.8%, while Q2 like-for-like sales rose 2.1%, reflecting steady customer demand and contribution from new store openings.
Profitability advanced alongside top-line growth. H1 2025 EBITDA reached $418 million, up 7% YoY, while Q2 EBITDA rose 7.6% to $204 million. Gross profit in the first half increased 5.2% to $933 million. Gross profit in the second quarter increased 6.5% to $468 million. Net profit for the first half totalled $127 million, up 9.1% year on year, with Q2 net income of $57 million broadly in line with the prior year’s quarterly performance. Profit before tax came in at $144 million for H1 and $66 million for Q2.
The UAE, Lulu’s largest market, led the quarter with 9.4% year-on-year revenue growth, supported by strong fresh foods demand and omni-channel execution. In Saudi Arabia, revenue advanced 3.8% on higher electrical sales and new store contributions. Kuwait delivered a 4.9% increase, Qatar edged up 0.1% as fresh foods growth offset softer department store sales, and Oman declined 1% amid price decreases even as volumes rose.
The company continued to invest in its physical footprint and digital capabilities. Lulu opened one hypermarket and one express store in the UAE during Q2, adding 9,245 square metres of retail space and taking total space to 1.35 million square metres across 120 hypermarkets, 112 express stores and 24 mini-markets. One small express store in Dubai was closed during the period. The roll-out remains on track for a total of 20 openings in 2025 with all 11 already opened by the end of July.
Reflecting earnings strength and in line with its stated policy, the Board declared an interim dividend of $98.4 million for H1 2025, equivalent to 3.5 fils per share and representing a 78% payout of H1 distributable profits. The timetable sets August 20 as the last entitlement date, August 21 as the ex-dividend date, and August 22 as the record date, with payment due within 30 days of the Board meeting.
Saifee Rupawala, Chief Executive Officer of Lulu Retail, commented: “Our steady and resilient H1 2025 performance is a testament of our well established growth pillars, that has helped us to deliver record sales and supported progression on margins. Average basket value, customer count and sales per square metre all increased positively over the first six months of the year, as 690,000 daily shoppers chose Lulu. Expansion continues in line with our strategy with seven stores opening in H1 2025 and further four in July, taking the total store count to 259. Our loyalty program continues to grow, with 1 million new members joining during the second quarter, taking total count to 7.3 million”.