Lulu Retail declares $84.4m dividend after 4.7% spike in 2024 revenue

Dubai: Lulu Retail saw its revenue rise by 4.7% to $7.6 billion in 2024, with higher footfall across its 250 stores driving up like-for-like (LFL) sales - from stores that have been open for a year or more - by 2.3%.

Revenue totaled $1.9 billion in the last quarter of the year, a 1.8% increase compared to the same period in 2023. EBITDA for the full year grew by 4.4%, with a margin of 10.32%.

In Q4 2024, EBITDA was $219.2 million, maintaining stable margins of 11.6%, despite higher lease expenses in Saudi Arabia and Qatar due to lease modifications. Net profit from continuing operations for the full year reached $216.3 million, up 12.6% from 2023, with a net profit margin of 3.4% in Q4.

“2024 has been a year of historic achievements for Lulu Retail, highlighted by our record-breaking IPO on the ADX, which marked a significant milestone in our journey of growth. This year, we demonstrated the strength of our business model through disciplined expansion, strategic partnerships, and an unwavering focus on innovation,” said Yusuffali MA, Chairman of Lulu Retail.

Lulu Retail expanded its footprint by opening 21 new stores in 2024, including nine in Q4, bringing the total number of stores to 250 by year-end. The company’s private label products contributed 29.6% of retail revenue, a 110 basis point increase YoY, and e-commerce sales grew 70%, accounting for 4.5% of total retail sales.

Lulu Retail’s Board of Directors has recommended a dividend payout of $84.4 million (3 fils per share), reflecting an 85% payout ratio. The company also successfully completed a record IPO on the Abu Dhabi Stock Exchange (ADX) in November 2024, raising $1.72 billion.

“Looking ahead, we are committed to delivering sustainable value for all our stakeholders and solidifying Lulu’s position as a trusted shopping destination for communities across the region and beyond,” added Yusuffali MA.

The company has reaffirmed its medium-term growth outlook, focusing on expansion and customer engagement in the region.