Retail Lulu Q3 profit rises 126% as revenue hits $1.9bn By Pramod Kumar November 21, 2024, 10:46 AM Creative Touch Imaging/Reuters Connect Lulu's revenue rose to $1.86bn, driven by strong sales performances in the UAE, Saudi Arabia and Kuwait Lulu Retail Holdings, the largest grocery retailer in the GCC, reported a 126 percent year-on-year increase in net profit to $35.1 million in the third quarter of 2024. The company cited improved operating profit and cost management for the rise. Revenue rose to $1.86 billion, up 6 percent on last year, driven by a strong sales performance in key markets, including the UAE, Saudi Arabia and Kuwait. The company reported double-digit growth in fresh food and mid-to-high single-digit improvement in electrical products. The bottom line rose 73 percent annually to $151 million in the nine-month period, while the top line increased 6 percent year on year to $5.4 billion. The UAE market, in particular, saw strong revenue growth of 7.5 percent year on year in the third quarter, mainly driven by healthy like-for-like growth of 4.7 percent and strong market tailwinds in the region. Three new stores were opened in the UAE in the first nine months. High demand leads Lulu to upsize IPO stake to 30% Lulu shrugs off rivals’ stock performance ahead of IPO UAE’s LuLu to build India’s largest shopping mall for $483m Revenue in Saudi Arabia grew by 6 percent to $369.3 million in the quarter, supported by an improvement in fresh food offers. Five new stores were opened in the kingdom between January and September, including two hypermarkets, two express stores and one mini market. Earlier this month Lulu Retail Holdings launched an initial public offering on the Abu Dhabi Stock Exchange, offering a 30 percent stake in the company, and giving it an initial market capitalisation of around AED21 billion ($5.7 billion).
