Lulu Retail Holdings, the GCC’s largest grocery retailer, posted higher profits in the first half of 2025, buoyed by strong e-commerce growth and steady in-store sales across key markets.
Net earnings rose 9% year-on-year to $127 million, pushing the net profit margin to 3%, the company said in a filing to the Abu Dhabi Securities Exchange.
Revenue climbed 6% to $4 billion, with like-for-like sales up 4% from the same period in 2024.
Lulu Market Performance
The UAE, which is the firm’s biggest market, led growth with a 9% jump in second-quarter revenue. Saudi Arabia and Kuwait followed with gains of 4% and 5%, respectively, while Oman slipped 1% due to flat supermarket sales despite higher volumes and lower prices.
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E-commerce continued to expand rapidly from a low base, with sales surging 34% in the first half to account for 6% of total retail revenue. Private-label products — a higher-margin segment — grew 4% in the quarter and 6% in the half-year, increasing penetration to 30%.
Lulu opened seven new stores in the first half and plans nine more by year-end. Net debt remained steady at $2.5 billion, while shareholders will receive an interim dividend of $98.4 million, in line with the group’s IPO policy.
Despite the earnings lift, shares closed 1.6% lower at AED 1.21 on Tuesday, extending a year-to-date decline of roughly one-third. Lulu International retains a 70% stake, with the remaining 30% as free float.
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