LuLu Retail Net Profit Jumps 9.1% Year-on-Year to $127Mn in H1

LuLu Retail has reported a solid 9.1% year-on-year increase in net profit to $127mn in the first half (H1) of 2025.

It has declared an interim dividend of $98.4mn (3.5 fils per share), corresponding to a payout ratio of 78% of H1-2025 distributable profits — consistent with the IPO (initial public offering) dividend policy.

“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, chief executive of LuLu Retail.

Revenues rose to $4.1bn (up 5.9% year-on-year), and like-for-like sales increased by 3.8%, driven by robust performance across key categories.

In the second quarter (Q2) of 2025, the company reported revenues of $2bn, up 4.6% on an annualised basis 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% year-on-year, accounting for 29.7% of retail revenue; while e-commerce maintained its momentum with sales up 43.4% to $108mn, representing 5.6% of retail revenue. Gross profit increased 6.5% year-on-year to $468mn.

Earnings before interest, taxes, depreciation and amortisation (Ebitda) grew 7.6% to $204mn and Ebitda margins improved by 28 basis points in Q2-2025.

The Happiness loyalty programme added 1mn new members during the quarter, bringing total membership to 7.3mn.

LuLu Retail said seven new stores were opened in H1-2025 plus 4 more in July, taking the total to 259 with full-year target of 20 new stores remaining on track.

The UAE (largest market) showed Q2 revenue grow 9.4% year-on-year, driven by continued high demand for fresh food and supported by LuLu’s omnichannel strategy.

In Saudi Arabia, revenue grew 3.8% on an annualised basis, aided by strong electrical goods sales and new store openings and in Kuwait, revenue rose 4.9%; consistent positive performance.

Founded in 1974, LuLu Retail, together with its subsidiaries, is the largest full-line retailer in the Gulf Co-operation Council (GCC) by selling space, sales, and store count, operating 256 hypermarkets, express, and mini-market stores across the region.

The group supports a robust e-commerce presence via its mobile app, online storefront, and partner channels. Serving more than 690,000 daily shoppers from 130 nationalities, LuLu sources products from 85 countries and operates 19 on-the-ground sourcing offices. Its strong brand reputation across the GCC fuels store growth, network expansion, and elevated customer loyalty.