Muscat: Lulu Retail has announced its H1 2025 financial results, delivering a solid 9.1% year-on-year increase in net profit to $127.0 million. Revenues rose to $4.1 billion (up 5.9% YoY), and like-for-like sales increased by 3.8%, driven by robust performance across key categories. In Q2 2025, the company reported revenues of $2.0 billion, up 4.6% YoY with a strong sales growth. This performance was bolstered by continued growth in private label and the e-commerce category. Private label grew 3.5% YoY, accounting for 29.7% of retail revenue, while e-commerce maintained its momentum with sales up 43.4% YoY to $108 million, representing 5.6% of retail revenue. Gross profit increased 6.5% YoY to $468 million. EBITDA grew 7.6% YoY to $204 million. The jump was supported by growth in private label and ecommerce sales, and as per plans, to open 20 new stores in 2025
Declares interim dividend of $98.4 million (3.5 fils per share):
Lulu Retail has declared an interim dividend of $98.4 million (3.5 fils per share), corresponding to a payout ratio of 78% of H1 2025 distributable profits—consistent with the IPO dividend policy.
Key Highlights – H1 2025
* Revenue: $4.1 billion (up 5.9% YoY), driven by strong volume and category growth
* EBITDA: $418 million (up 7.0% YoY); Q2 2025: $204 million (up 7.6% YoY). Margins improved by 28 basis points in Q2.
* Net Profit: $127 million (up 9.1% YoY), with a net margin of 3.1%
* Private Label Growth: Up 3.5% YoY in Q2, accounting for 29.7% of retail revenue
* E-commerce: Q2 sales up 43.4% YoY to $108 million (5.6% of retail revenue); 45.4% increase in customer count YoY
* Loyalty Program: The Happiness loyalty program added 1 million new members during the quarter, bringing total membership to 7.3 million.
* Store Expansion: Seven new stores opened in H1 plus 4 more in July, taking the total to 259; full-year target of 20 new stores remains on track
* Growth Strategy: Private label and e-commerce continue to play pivotal roles in Lulu’s growth approach
“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:
* UAE (largest market): Q2 revenue up 9.4% YoY, driven by continued high demand for fresh food and supported by Lulu’s omnichannel strategy
* Saudi Arabia (KSA): Revenue grew 3.8% YoY, aided by strong electrical goods sales and new store openings
* Kuwait: Revenue up 4.9% YoY; consistent positive performance