Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
Lulu Retail Holdings reported a net profit of $204.5 million (Dh751 million) for the full year ended December 31, 2025, according to its annual 2025 results.
Full-year EBITDA stood at $782.2 million (Dh2.87 billion), delivering a margin of 9.9%, while total revenue increased 4.1% year-on-year to $7.93 billion (Dh29.13 billion).
For the fourth quarter of 2025, net profit amounted to $41.6 million (Dh152.8 million). EBITDA for the quarter reached $183.9 million (Dh675.7 million), with a margin of 9.5%, while revenue totalled $1.94 billion (Dh7.13 billion), up 2.4% year-on-year.
The company recorded like-for-like sales growth of 2.3% during FY 2025, supported by strong performance in the Fresh category and sustained e-commerce demand. E-commerce sales rose 38.6% year-on-year for the full year and 51.8% in Q4 2025, accounting for 6% of total retail revenue.
Private label penetration improved to 29.8% of retail sales in FY 2025, compared to 29.6% in FY 2024 . The Happiness loyalty programme expanded to 8.4 million members by year-end, with approximately 67% of revenue linked to loyalty members.
The Board recommended a second-half dividend of $98.4 million (Dh361.5 million), equivalent to 3.5 fils per share, bringing the total FY 2025 dividend to $196.9 million (Dh723 million), or 7 fils per share.
Lulu opened 20 new stores during FY 2025, comprising six hypermarkets, 11 express stores and three mini markets, increasing total selling space by 5.6% year-on-year to 1.38 million square metres. Approximately 70% of new stores were in the express and mini market format, reflecting evolving customer preferences.
In Q4 2025 alone, seven new stores were launched — two hypermarkets, four express stores and one mini market — adding 23,498 square metres of selling space.
As at December 31, 2025, Lulu operated 267 stores across the GCC, compared to 250 stores a year earlier.
Saifee Rupawala, Chief Executive Officer of Lulu Retail, said: “We are pleased to report our 2025 results. The year concluded with 20 new store openings, taking our total to 267 stores and delivering record revenue of almost $8 billion. Our existing portfolio and growing e-commerce presence positions us to continue our disciplined expansion strategy across the GCC.
"Our high cash generation and confidence in the outlook allows us to propose a H2 dividend of 3.5 fils per share, taking the total to 7 fils per share for 2025. This offers an attractive yield to shareholders who we thank for their continued support.”
The company said it achieved its 2025 guidance provided at the time of its Q3 2025 results.
For 2026, Lulu confirmed guidance of 4–5% revenue growth, a flat EBITDA margin, 10% growth in net profit and the opening of 18 to 20 new stores.
Capital expenditure during FY 2025 totalled $134.1 million (Dh492 million), representing 1.7% of revenue, primarily directed towards new store openings.
