Lulu Retail reports $1.86 billion revenue in Q3 2024

emirates7 - Lulu Retail has announced its financial results for the three-month and nine-month periods ending 30th September 2024, marking its first since its record-breaking IPO on the Abu Dhabi Securities Exchange (ADX). The company saw strong revenue growth in Q3 2024, reaching $1.86 billion, an increase of 6.1% compared to the previous year.

In a statement on Thursday, Lulu attributed its solid sales performance to significant growth in key markets, including the UAE, Saudi Arabia, and Kuwait, along with increased sales across various product categories.

Like-for-like (LFL) sales for Q3 2024 grew by 1.2%, totaling $1.7 billion, while LFL sales for the nine-month period of 2024 rose by 2.2% to $5.3 billion.

In the UAE, Q3 2024 revenue grew by 7.5%, driven by strong LFL growth of 4.7% and favorable market conditions. During the first nine months of 2024, the company opened three new stores.

Revenue in Saudi Arabia increased by 5.7% to $369.3 million in Q3 2024, while Oman, Kuwait, and Bahrain also reported strong revenue growth. Qatar maintained stable revenue and held onto its leading market share position.

Lulu continues to focus on omnichannel growth, with e-commerce sales rising to $237.4 million for the nine-month period, a year-on-year increase of 83.5%. E-commerce now accounts for 4.3% of total retail sales.

EBITDA for Q3 2024 reached $176.3 million, up 9.9% year-on-year, with an EBITDA margin of 9.5%, reflecting a 30bps improvement from the previous year.

Net profit from continuing operations surged to $35.1 million in Q3 2024, a 126% increase, driven by stronger operating profits and better cost management. For the nine-month period, net profit from continuing operations rose by 73.3% to $151.5 million.

Yusuffali MA, Chairman of Lulu Retail, commented, “It’s been a landmark period for us, with our record listing on ADX and our first results as a public company. The vision and ambition of the GCC nations are helping businesses like Lulu thrive and creating new opportunities for growth.”

Saifee Rupawala, CEO of Lulu Retail, stated, “Both the third quarter and nine-month period showed consistent revenue and profit growth across our markets, driven by strong sales across the GCC, strategic expansion in higher-margin segments like Private Label, and investments in operational efficiencies and customer engagement.”