Lulu profit and revenue up as online sales grow by quarter

Net profit of Lulu Retail, the largest grocery retailer in the GCC, increased in the first quarter of 2025, supported by higher online sales.

Net profit grew 16 percent year on year to $70 million, with net profit margin rising to 3 percent, up 25 basis points annually, the retailer said in a statement published on the Abu Dhabi stock exchange on Wednesday.

Revenue reached $2 billion, up 7 percent year on year, with like-for-like sales up 4 percent annually.

The fresh food category revenue grew 8 percent year on year in the first quarter, driven by Ramadan and improved consumption trends.

Revenue from electrical goods rose 29 percent year on year, mainly due to an increase in sales across higher value items.   

Ecommerce sales grew 25 percent year on year to $93 million, accounting for 5 percent of retail revenue. Customer count was up 26 percent in the first quarter of 2025 from a year ago.

Private label product sales were up 10 percent annually, contributing 29 percent of the retail revenue.

Revenue in Saudi Arabia jumped by 10 percent year on year, primarily driven by new store openings in the last 12 months and strong like-for-like growth.

Earnings from Oman, Qatar and Kuwait increased 8 percent, 7 percent and 5 percent year on year.

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The company opened five stores, which included Mecca and Medina in Saudi Arabia, during the first quarter. It maintains the target of 20 new stores this year.  

Saifee Rupawala, CEO of Lulu, said the company will continue its growth momentum, focusing on driving growth in the existing store network, opening new stores, driving operational efficiencies and more emphasis on private label and ecommerce offerings.

Lulu shares closed at AED 1.4 on the Abu Dhabi Securities Exchange on Tuesday. Lulu International holds 70 percent of the company, while the free float is 30 percent.