LuLu Retail has announced its H1 2025 financial results, delivering a solid 9.1 percent year on year increase in net profit to $127 million. The revenues rose to $4.1 billion (up 5.9 percent YoY), and like-for-like sales increased by 3.8 percent, driven by robust performance across key categories.
In Q2, the company reported revenues of $2 billion, up 4.6 percent YoY with a strong sales growth. This performance was bolstered by continued growth in the private label and e-commerce categories.
LuLu’s private label grew 3.5 percent YoY, accounting for 29.7 percent of retail revenue, while e-commerce maintained its momentum with sales up 43.4 percent YoY to $108 million, representing 5.6 percent of retail revenue. The gross profit increased 6.5 percent YoY to $468 million. The EBITDA grew 7.6 percent YoY to $204 million.
LuLu Retail has declared an interim dividend of $98.4 million (3.5 fils per share), corresponding to a payout ratio of 78 percent of H1 2025 distributable profits — consistent with the IPO dividend policy.
Meanwhile, LuLu’s Happiness loyalty program added 1 million new members during the quarter, bringing the total membership to 7.3 million.
LuLu opened seven new stores in H1, in addition to four more in July, taking the total to 259. Its full-year target of 20 new stores remains on track.
“Our steady and resilient H1 2025 performance is a testament to our well-established growth pillars, enabling record sales and margin improvements. We expect our growth momentum to persist as we focus on expanding our store network, launching new outlets, enhancing operational efficiency, and unlocking further potential through private label and e-commerce offerings,” said Saifee Rupawala, CEO of Lulu Retail.
Regional performance
In the UAE, LuLu’s largest market, the Q2 revenue was up 9.4 percent YoY, driven by continued high demand for fresh food and supported by LuLu’s omni-channel strategy. In Saudi Arabia, the revenue grew 3.8 percent YoY, aided by strong electronic goods sales and new store openings. Meanwhile, in Kuwait, the revenue grew by 4.9 percent YoY, showing a consistent positive performance.
