The first since its record-breaking initial public offering (IPO) and listing on the Abu Dhabi Securities Exchange (ADX) on November 14, this financial update shows outstanding sales performance across major markets and product categories.

Excellent Expansion in Important Markets

Driven by a varied product variety and increasing retail footprint, the UAE, Saudi Arabia , and Kuwait were major players in Lulu's expansion. Fresh food sales showed double-digit increase; electrical products showed mid to high single-digit increase, Supported by like-for- like (LFL) sales growth of 4.7%, the UAE alone had a 7.5% revenue rise, Thanks to improved fresh food options to satisfy local demand, sales in Saudi Arabia increased by 5.7% to $369.3 million, To meet a variety of consumer needs, the company opened five outlets in Saudi Arabia over the nine-month period—hypermarkets and express stores among other types.

With Qatar keeping its top market share, other GCC markets including Oman, Kuwait, and Bahrain all recorded strong income increase. The company's omnichannel approach was crucial since e-commerce sales jumped by 83.5% year-on-year to $237.4 million, today making 4.3% of all retail sales.

Growth and Store Opening Policies

Opening twelve new locations in the first nine months—three in the third quarter—Lulu kept its ambitious expansion in 2024 under pace. Lulu's overall retail area by September 30 comprised 1.3 million square meters spread over 241 locations, Targeted capital expenditure (Capex) of $98.5 million helped to support this expansion, mostly for new store openings in Saudi Arabia and the UAE. By switching to an asset-light business, Lulu has lowered Capex as a proportion of sales to 1.7% instead of 1.9% in the same period in 2023.

By the end of the nine-month term, the company's loyalty program—the Happiness Loyalty Scheme bustles around five million members throughout GCC nations, This program has improved client involvement and retention, which helps to explain consistent income increase.

Driven by better product mix and higher-margin private label products now accounting for 29.3% of total retail sales—Lulu's EBITDA for Q3 2024 rose by 9.9% year-on-year to $176.3 million, These items span fresh food, consumer packaged goods, lifestyle products, and electrical equipment. The third quarter's expansion in the gross margin roughly 130 basis points helps to further sustain profitability.

Rising dramatically to $35.1 million in Q3, a 126% annual increase, net profit from ongoing activities Driven by better running efficiency and cost control, net profit increased by 73.3% to $151.5 million over the nine-month period.

Lulu established a strategic alliance with Modon Holding of Abu Dhabi to create supermarkets and hypermarkets in post-Q3, This cooperation fits Lulu's plan to establish presence in important markets. The business also opened five more outlets, therefore increasing the total count of fresh stores for 2024 to 17.

As of September 30, Lulu's financial posture is still steady; net debt is $2.54 billion. On an IFRS-16 basis, this offers a net debt-to---EBITDA ratio of 3.2x. Leases excluded, the ratio is 1.4x, which helps the business to keep its investment capacity for expansion.

Emphasizing the chances presented by the GCC's ambitious aim for economic development, Future Outlook Chairman Yusuffali MA voiced hope in Lulu's future path, Key factors for addressing different communities and creating strong regional alliances, he underlined, are Lulu's three-store models' adaptability and rising e-commerce presence.

Emphasizing robust sales growth across the GCC, a strategic focus on higher-margin categories, and improvements in operational efficiencies, CEO Saifee Rupawala confirmed confidence in the company's performance, Holiday-driven footfall and advertising initiatives should cause the fourth quarter to be seasonally stronger.

Building on the momentum of its IPO and ADX listing, Lulu's ongoing attention on customer interaction, market expansion, and innovation positions it well for steady development, Maintaining its standing as a top retail player in the GCC, the company is still dedicated to provide value for both consumers and investors.

Lulu announces the launch of 12 new stores, Reporting $1.86B Q3 revenue growth

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