Prominent industrialist M.A. Lulu Retail, under Yousafali-led Abu Dhabi-headquartered Lulu Group (LULU), reported a 6.1% growth in revenue at $186 crore (roughly Rs 15,700 crore) in the July-September 2024 quarter. This is an increase from USD 175.27 crore in the corresponding quarter of the previous year. 5.7% revenue growth for January-September 2024 (9 months).

EBITDA rose 9.9% to $17.63 crore (Rs 1,485 crore). EBITDA Margin, one of the measures of operational efficiency, improved from 9.2 to 9.5 percent. Net profit from continuing operatinos jumped 126% to $3.51 crore (Rs 296 crore) from $1.55 crore (Rs 130 crore). Lulu’s capital expenditure in January-September 2024 is $9.85 crore (Rs 830 crore). This is 1.7 percent of the total sales revenue. A major share of this expenditure was to open new stores.

The shares of Lulu Retail were listed on the Abu Dhabi Securities Exchange (ADX) on November 14. Lulu held its largest initial public offering (IPO) of the year in the UAE from October 28 to November 5. The IPO, which had a target of raising $172 crore (Rs 14,500 crore), received applications worth Rs 3.11 lakh crore. This is the highest acceptance of an IPO by a non-government entity in the UAE in the past decade.

UAE and Saudi became strong

Strong sales in key markets UAE and Saudi Arabia propelled Lulu Retail to post a jump in profit and revenue in the last quarter. Revenue growth was 7.3% in UAE and 5.7% in Saudi Arabia. The markets of Oman, Kuwait and Bahrain also posted strong gains. Last quarter, Lulu Retail’s fresh food division was also strong with double-digit growth. The electric goods segment also recorded good sales.

New stores and e-commerce

Lulu Retail opened 12 new stores in the GCC region during the first nine months of 2024, including three in the September quarter. With this, the total number of stores as on September 30 has increased to 241. 5 new stores have also opened since September. The number of new stores in 2024 has increased to 17. 5 new stores were opened in Saudi alone this year.

Lulu’s e-commerce division also recorded strong sales gains, the operating results show. Revenue from e-commerce is estimated at $23.74 crore (approx. Rs. 2,000 crore) in January-September 2024, with a growth of 83.5%. E-commerce accounts for 4.3 percent of the company’s total revenue. As of the September quarter, the company has a net debt of $254 crore (Rs 21,400 crore).

MA said that the days of the milestone. Yusufali

Chairman MA said that this is a milestone period for Lulu Retail. Yousafali said. This is the first operating result to be released after the record IPO and listing on the ADEX. The aim is to tap into higher growth by improving existing stores and opening new stores. Lulu has entered into an agreement with Modon Holding to open Lulu hypermarkets, supermarkets and other stores in more regions in the UAE.

Meanwhile, Lulu’s shares are trading at a loss today on the ADX. The stock is currently trading at AED 2.01, down 0.99%. The listing price was 2.04 dirhams. MA Founded by Yousafali in Abu Dhabi in 1974, Lulu Group has more than 240 stores in 6 GCC countries. More than 6 lakh people visit Lulu stores every day. The company sources products from 85 countries including India.