Lulu Retail reports strong growth in 2024, expands store network and e-commerce presence

Lulu Retail delivered a 4.7% year-on-year revenue growth in 2024, reaching $7.6 billion. The Middle East retail giant also saw 1.8% growth in Q4 revenue, totaling $1.9 billion, according to the retail company.

This was fueled by strong performances in Private Label sales and e-commerce. Private Label products contributed 29.6% of total retail revenue, reflecting a 110-basis-point increase year-on-year. Meanwhile, e-commerce sales surged 70% to $325.6 million, accounting for 4.5% of total sales.

Profitability and financial performance

Lulu’s EBITDA grew 4.4% to $786.3 million, with stable margins at 10.32%, driven by improved gross margins. However, higher operating expenses from lease modifications in Saudi Arabia and Qatar impacted costs. On a lease-adjusted basis, EBITDA margins expanded by 118 bps to 6.3%, supported by growth in higher-margin categories such as fresh food, consumer packaged goods, lifestyle products, and electronics.

For Q4 2024, EBITDA reached $219.2 million, up 0.6% YoY, while net profit from continuing operations rose 12.6% YoY to $216.3 million, with a net profit margin of 2.8%. However, Q4 net profit declined by 38.1%, largely due to slower revenue growth and higher interest expenses from increased working capital debt.

Expanding store network and customer loyalty

Lulu continued its expansion with 21 new store openings in 2024, including nine in Q4, bringing its total selling space to 1.3 million square meters—a 5% increase YoY. The retailer’s shift toward an asset-light model gained momentum, with 70% of new openings falling under the express and mini-market formats, reducing capital expenditure to $136.7 million, down from $149.5 million in 2023.

The Happiness Loyalty Programme also saw remarkable growth, reaching 5.5 million members across the GCC—up from 1.1 million in 2023. This initiative has been key in boosting customer retention and increasing basket sizes, with 65% of December 2024 revenue tied to loyalty members.

Looking ahead

Lulu’s strong financial position was reflected in $649.7 million in cash flow and an 82.6% cash conversion ratio—a 245-bps improvement YoY. The Board of Directors has recommended a dividend payout of $84.4 million (3 fils per share).

Saifee Rupawala, CEO of Lulu Retail, highlighted the company’s continued growth, stating:

“2024 has been transformative for Lulu, with a significantly oversubscribed IPO on ADX and strong expansion across all areas of our business. As we head into 2025, we remain focused on leveraging our operational strength and market leadership to create lasting value for our customers and investors.”