Today's Edition
ABU DHABI (ALETIHAD)
Lulu Retail, the largest and fastest-growing pan-GCC retailer, has reported strong financial results for the fiscal year 2024, demonstrating continued growth across its business operations.
The company recorded $7.6 billion (Dh27.9 billion) in revenue, marking a 4.7% year-on-year (YoY) increase, driven by higher footfall across stores and a strategic focus on high-margin categories.
Lulu Retail’s net profit from continuing operations reached $216.2 million (Dh793.5 million), reflecting a 12.6% YoY growth, with net profit margins improving by 20 basis points to 2.8%. Total EBITDA rose 4.4% YoY to $786.3 million (Dh2.88 billion), maintaining a margin of 10.32%. The company’s e-commerce sales surged 70% YoY, contributing 4.5% to total retail revenue, underscoring the rapid digital transformation within its retail operations.
The retailer continued its expansion with 21 new store openings in 2024, including nine in the fourth quarter, bringing its total store count to 250 across the GCC. The expansion included six hypermarkets, 12 express stores, and three mini-markets, increasing Lulu’s total selling space by 5% YoY to 1.3 million square metres. A landmark 250th store was inaugurated in Jabal Omar, Makkah, with another key opening planned in Madina for early 2025.
Lulu’s Happiness Loyalty Programme also saw significant growth, surpassing 5.5 million members, with 65% of December’s revenue linked to loyalty members. The programme continues to be a key driver of higher basket sizes and improved customer retention.
The company’s IPO on the Abu Dhabi Securities Exchange (ADX) in November 2024 was a historic milestone, raising $1.72 billion (Dh6.32 billion) amid overwhelming investor demand.
Looking ahead, Lulu Retail remains committed to its medium-term strategic growth pillars, focusing on store network expansion, operational efficiencies, and revenue growth through private-label offerings and digital initiatives. The Board of Directors has recommended a dividend of $84.4 million (Dh309.8 million) (3 fils per share), reflecting an 85% payout ratio, reinforcing the company’s commitment to delivering shareholder value while ensuring financial flexibility for future investments.
CEO Saifee Rupawala commented: “The past year has been transformative for Lulu Retail, from our successful IPO to strong business expansion. We are well-positioned to build on this momentum in 2025, leveraging our operational strength and market leadership to create lasting value for our investors and customers.”
