Argaam CHARTS: TASI-listed food retailers vs. Lulu KSA

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Lulu Retail Co. was recently listed on the Abu Dhabi Securities Exchange (ADX) and operates across several Gulf markets, including Saudi Arabia.

By the end of Q3 2024, Lulu’s revenues in Saudi Arabia grew 5.7% to $369.3 million (SAR 1.38 billion), thanks to enhanced promotions for fresh food.

According to the company’s prospectus, Lulu achieved the highest sales per square meter in Saudi Arabia and the highest average sales per store across the Kingdom in 2023, based on its estimates.

The company is confident in its ability to achieve significant growth in the Saudi grocery market and boost its market share. It plans to expand its presence in over 20 cities with populations exceeding 200,000 and to open multiple stores in cities with populations of one million or more.

Lulu has partnerships with several Saudi governmental entities.

Lulu's Q3 2024 revenues in Saudi Arabia were nearly on par with those of BinDawood Holding Co. during the same period.

Meanwhile, Abdullah Al Othaim Markets Co. outperformed Lulu, achieving revenues of approximately SAR 2.563 billion. In comparison, Saudi Marketing Co. (Farm Superstores) reported revenues of only SAR 449 million. Meanwhile, Panda Retail Co., which is unlisted and affiliated with Savola, recorded revenues of about SAR 2.54 billion.

Lulu has 56 branches in Saudi Arabia, while Al-Othaim operates over 409 branches, including 359 in Saudi Arabia and 50 in Egypt, by the end of 2023.

It was followed by Panda Retail with 193 branches, then Farm Superstores with 116 branches, and BinDawood Holding with 87 branches.

Lulu reported a revenue of SAR 93.8 million per branch in Saudi Arabia, according to its 2023 total revenue of $1.4 billion (SAR 5.25 billion).

In comparison, BinDawood posted SAR 65.6 million per branch, followed by Panda with SAR 54.4 million, Al Othaim at SAR 26 million, and Farm Superstores at SAR 15.7 million.

Lulu did not disclose its net profits in Saudi Arabia, while BinDawood leads in profitability per branch at about SAR 3.3 million.

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