Lulu Retail Net Profit Rises 9.1% in H1, Declares $98M Dividend

Lulu Retail has announced a strong financial performance for the first half of 2025, posting a 9.1% year-on-year increase in net profit to $127 million, reflecting robust operational execution across its markets. The company also declared an interim dividend of $98.4 million (3.5 fils per share), in line with its IPO dividend policy.

Revenue and Profit Growth

The retailer reported H1 2025 revenues of $4.1 billion, up 5.9% YoY, with like-for-like sales rising 3.8%. Q2 2025 revenues reached $2.0 billion, marking a 4.6% YoY increase. The performance was driven by strong growth in key categories, supported by Lulu’s private label and e-commerce segments.

Private label sales grew 3.5% YoY, accounting for 29.7% of retail revenue, while e-commerce sales surged 43.4% YoY to $108 million, representing 5.6% of retail revenue. Gross profit rose 6.5% YoY to $468 million, and EBITDA increased 7.6% YoY to $204 million in Q2, with margins improving by 28 basis points.

Strategic Expansion and Customer Engagement
During H1, Lulu opened seven new stores and added four more in July, bringing the total store count to 259. The company remains on track to open 20 new stores in 2025. Its Happiness loyalty program also added 1 million members in the quarter, raising total membership to 7.3 million.

CEO Saifee Rupawala commented, “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, enhancing operational efficiency, and unlocking further potential through private label and e-commerce offerings.”

Regional Performance Highlights

• UAE: Q2 revenue up 9.4% YoY, driven by high demand for fresh food and Lulu’s omnichannel strategy.

• Saudi Arabia (KSA): Revenue up 3.8% YoY, supported by strong electrical goods sales and new store openings.

• Kuwait: Revenue increased 4.9% YoY, maintaining consistent positive performance.

About Lulu Retail
Founded in 1974, Lulu Retail is the largest full-line retailer in the GCC by selling space, sales, and store count, operating 256 hypermarkets, express, and mini-market stores across the region. Serving more than 690,000 shoppers daily from 130 nationalities, the company sources products from 85 countries and operates 19 on-the-ground sourcing offices. Its strong GCC brand reputation continues to drive store expansion, customer loyalty, and e-commerce growth.