Lulu Retail Achieves $1.86 Billion Revenue In Q3 2024 Driven By GCC Market Growth

Lulu Retail has shared its financial performance for the third quarter and the first nine months of 2024, marking its initial update since its notable IPO on ADX. The company reported a significant revenue increase in Q3 2024, reaching $1.86 billion, which is a 6.1% rise compared to the previous year. This growth was primarily fueled by strong sales in major markets such as the UAE, Saudi Arabia, and Kuwait.

In the UAE, revenue surged by 7.5% during Q3 2024. This was largely due to a healthy like-for-like (LFL) sales growth of 4.7% and favourable market conditions in the region. Over the nine-month period, three new stores were launched, contributing to this growth. Meanwhile, Saudi Arabia saw its revenue climb by 5.7%, reaching $369.3 million in Q3.

Lulu's performance in Oman, Kuwait, and Bahrain also showed strong revenue increases. Qatar maintained stable revenue while holding onto its leading market share position. The company's focus on omnichannel strategies led to e-commerce sales rising to $237.4 million over nine months, an impressive 83.5% year-on-year increase.

The company's EBITDA for Q3 2024 stood at $176.3 million, reflecting a 9.9% year-on-year growth with an EBITDA margin of 9.5%, marking an improvement of approximately 30 basis points from last year. Net profit from continuing operations rose significantly by 126% to $35.1 million for Q3.

For the nine-month period ending September 30th, net profit from continuing operations improved by 73.3%, reaching $151.5 million. This increase was attributed to enhanced operating profit and better cost management practices.

Leadership Insights

Yusuffali MA, Chairman of Lulu Retail, remarked on this milestone period for the company following their record listing on ADX: "It has been a milestone period for our team, with our record listing on ADX and our first set of results as a listed company." He highlighted how the ambitions across GCC nations are fostering business growth opportunities for companies like Lulu.

Saifee Rupawala, CEO of Lulu Retail, commented on the ongoing revenue and profit growth across their business during this period: "The third quarter and nine-month period were marked with ongoing revenue and profit growth across our business." He noted that this was driven by sales growth across six GCC markets and strategic expansion into higher-margin segments like Private Label.

The company's strategic focus on operational efficiencies and customer engagement continues to drive its success in these key markets while expanding its footprint through new store openings and enhanced e-commerce capabilities.

With inputs from WAM