Lulu Retail has delivered revenue growth in the third quarter, despite what management described as a challenging environment for grocery retail.
The company, which operates hypermarkets and mini-markets in the GCC, saw revenue increase 2 per cent to US$1.8 billion for the quarter ended September 30. The growth was led by high demand for fresh food and electrical goods, partially offset by slower demand for lifestyle goods.
Like-for-like sales for the quarter slid 1 per cent, as a higher customer count was more than offset by a lower average basket value.
Gross profit increased 3.1 per cent to $449 million. EBITDA was broadly flat at $180 million.
“Amidst a challenging grocery retail environment, Lulu continues to show resilience as we execute on our growth strategy,” said Saifee Rupawala, CEO of Lulu Retail.
“Year-on-year customer count growth of almost 5 per cent demonstrates the strong appetite for Lulu’s value to premium offering.”
For the first nine months, revenue rose 4.7 per cent to $6 billion, while like-for-like sales increased 2.5 per cent. Net profit from continuing operations increased 7.5 per cent year-on-year to $163 million.
The company opened six new stores in Q3, taking the total to 13 in the first nine months.
“As customer preference for online channels continues to grow, Lulu is investing in our e-commerce offering, which is scaling at a rapid rate. Furthermore, we are evolving our customer offering with a trend towards smaller stores and a disciplined rollout program,” added Rupawala.
