Lulu Retail, the GCC’s retail powerhouse, has reported a transformative FY 2024, with revenue growing 4.7% year-over-year (YoY) to $7.6 billion and net profit from continuing operations rising 12.6% YoY to $216.2 million. The company also achieved a game-changing IPO, raising $1.72 billion. With 21 new stores opened in 2024 and a 70% increase in e-commerce sales, Lulu is poised to continue its rapid growth across the GCC.
Saifee Rupawala, CEO of Lulu Retail, commented on the impressive performance, stating, “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, now totalling 250 stores across the GCC, and investing in higher-margin categories, along with the rapid evolution of our e-commerce platform, has delivered strong results.”
The year 2024 marked significant advancements for Lulu Retail, particularly in its store expansion efforts, highlighted by the opening of 21 new stores, nine of which were launched in Q4 2024. This expansion reflected Lulu’s strategy to strengthen its presence in high-growth markets, particularly in the UAE and Saudi Arabia. By the end of 2024, the company operated 250 stores across the GCC, with 117 hypermarkets, 109 express stores, and 24 mini-markets. The new store openings represent a shift towards a more asset-light model, with 70% of the new stores being express and mini-market formats.
The company also saw impressive growth in its e-commerce business, with sales increasing by 70% YoY, representing 4.5% of total retail sales. This reflects that Lulu is successfully aligning with the growing trend of online shopping, seamlessly integrating it with their physical store strategy.
Lulu’s private label products, a key revenue driver, accounted for 29.6% of total retail revenue, marking a 110 basis point increase compared to the previous year. These exclusive products are expected to enhance profitability and foster customer loyalty.
Furthermore, Lulu’s Happiness Loyalty Program, which reached approximately 5.5 million members by the end of 2024, has played a significant role in increasing customer engagement and driving sales. The program has proven successful in enhancing customer retention, with around 65% of revenue in December 2024 linked to loyalty members.
In terms of financial performance, FY 2024 revenue grew by 4.7% YoY to $7.6 billion, while like-for-like (LFL) sales increased by 2.3%. EBITDA for the year rose by 4.4% to $786.3 million, maintaining a stable margin of 10.32%. This growth was driven by improvements in gross margins, higher sales from private label products, and the continued expansion of e-commerce. However, EBITDA was partially impacted by higher lease expenses in key markets such as Saudi Arabia and Qatar.
The company’s net profit from continuing operations totalled $216.2 million, representing a 12.6% increase from the previous year. However, Q4 2024 net profit decreased by 38.1% YoY, primarily due to slower revenue growth and higher interest charges resulting from increased working capital debt.
Lulu Retail also demonstrated strong cash flow generation, with $649.7 million in cash flow for FY 2024. The company’s net debt stood at $2.5 billion at the end of the year, maintaining a manageable debt-to-EBITDA ratio of 3.2x.
In terms of shareholder returns, the board of directors has recommended a dividend of $84.4 million, equating to 3 fils per share, reflecting an 85% payout ratio. The company aims to continue rewarding its shareholders while maintaining financial flexibility to support future growth.
Lulu Retail’s strong performance in 2024 reinforces its growth-oriented and customer-centric strategy. With continued investment in expanding its store network, evolving its e-commerce platform, and driving higher-margin product sales, the company is well-positioned to capture new growth opportunities in 2025.
Saifee Rupawala concluded, “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.”
Despite a challenging retail landscape, Lulu Retail’s FY 2024 results demonstrate the company’s strong performance and resilience. The strategic focus on expanding its store network, growing e-commerce sales, and investing in loyalty programs has enabled Lulu to drive sustainable growth across key markets. With a strong balance sheet and a commitment to delivering value to shareholders, Lulu Retail is poised to continue its market leadership and growth trajectory into the next fiscal year.
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