Lulu Retail Holdings Plc · ADX:LULU
Lulu Retail — Q1 2025 Earnings Presentation
23 slides from Lulu Retail's earnings presentation, May 13, 2025
Slide 1: Q1 2025 Earnings Presentation
Q1 2025 Earnings Presentation May 2025
Slide 2: Table of contents
Table of contents 1. Business Overview 2. Q1 2025 Results 3. Strategic Progress 4. Q&A 1
Slide 3: Disclaimer
Disclaimer No statement in this document is intended to be nor may be construed as a profit forecast. Any statements made in this document which could be classed a “forward- looking” are based upon various assumptions, including, management’s examination of historical operating trends, data containe
Slide 4: Business Overview
1. Business Overview 3
Slide 5: Business Overview
Business Overview Lulu Retail Operations Store Format Retail Footprint Selling Area Sourcing countries One-Stop- Shop 255 1.3 mn 85 119 Hypermarkets +2 Hypermarkets, Sqm +3 Express stores in Q1 2025 With 19 on-the-ground +22k sqm in Q1 2025 Everyday sourcing offices Shopping KSA (2) 112 Express (Sup
Slide 6: Q1 2025 performance driven by sales growth, margin delivery, and network expansion
Q1 2025 performance driven by sales growth, margin delivery, and network expansion Q1 2025 Key Financials Retail Operations E-Commerce Sales Retail Footprint E-Commerce Sales 255 Stores Selling Area $2.1 bn +7.3% YoY $93 mn +25.3% YoY 5 new stores 1.3 mn +22k sqm in Q1 2025 EBITDA Loyalty Members %
Slide 7: Q1 2025 Results
2. Q1 2025 Results 6
Slide 8: Disciplined execution driving growth and deleveraging
Disciplined execution driving growth and deleveraging Financial Performance Leverage and Cashflow Revenue Gross Profit Leverage 0.9x (excl. leases) 0.4x1 $2.1 bn 7.3% YoY $464.5 mn 4.0% YoY 2.9x (inc. leases) 0.3x1 EBITDA Profit Before Tax Free Cash Flow $214.1 mn 6.4% YoY $78.5 mn 21.6% YoY $187.9
Slide 9: Revenue growth supported by 3.6% LFL sales and store openings
Revenue growth supported by 3.6% LFL sales and store openings Revenue ($ mn) Revenue ($ mn) YoY: 7.3% 3.6% LFL 2,080 growth 1,940 1 4 83 94 1,853 1,985 Q1'24 Q1'25 Retail sales Wholesale Others Total • Q1’25 revenue growth of 7.3% YoY, supported by 3.6% growth in LFL sales, driven by strong festive
Slide 10: Strong growth registered in key markets…
Strong growth registered in key markets… Country UAE KSA Oman YoY: 5.2% YoY: 10.3% YoY: 7.8% 705 742 372 410 322 299 Revenue ($mn) Q1'24 Q1'25 Q1'24 Q1'25 Q1'24 Q1'25 YoY: 6.1% YoY: 8.3% YoY: 16.1% Segment 93 99 30 35 Adjusted 24 26 EBITDA ($mn) Q1'24 Q1'25 Q1'24 Q1'25 Q1'24 Q1'25 6 14 109 43 61 27
Slide 11: …supported by targeted promotions and rebound in demand
…supported by targeted promotions and rebound in demand Country Qatar Kuwait Others1 YoY: 6.7% YoY: 4.8% YoY: 13.2% 285 304 163 171 116 131 Revenue ($mn) Q1'24 Q1'25 Q1'24 Q1'25 Q1'24 Q1'25 YoY: 3.8% YoY: 9.4% YoY: (5.3%) Segment 30 31 Adjusted 20 22 19 18 EBITDA ($mn) Q1'24 Q1'25 Q1'24 Q1'25 Q1'24
Slide 12: Net Income growth highlighting strong operational efficiency and disciplined cost management
Net Income growth highlighting strong operational efficiency and disciplined cost management Gross Profit ($mn) EBITDA ($mn) PBT ($mn) Net Income ($mn) Gross Margin (%) EBITDA Margin (%) PBT Margin (%) Net Income Margin (%) 23.0% 22.3% 10.4% 10.3% 3.3% 3.8% 3.1% 3.4% YoY: 4.0% YoY: 6.4% YoY: 21.6% 4
Slide 13: Cash Flow generation supporting reduction in leverage
Cash Flow generation supporting reduction in leverage Capex ($mn) Cash Flow ($mn) Leverage ($mn) Capex Cash flow Leverage Capex as 1.3% Net debt ($ mn) 2,528 2,347 1.2% % of Sales Cash 88.6% 87.7% Conversion Maintenance Capex as % of 0.6% 0.4% 974 921 Sales YoY: 5.3% 23 26 1,900 1,913 178 188 (346)
Slide 14: Strategic Progress
Reward points Instant discounts ‘Amazing offers
Slide 15: Growth momentum anchored in established drivers
Growth momentum anchored in established drivers 01 02 Existing Store Growth New Store Rollouts 03 04 Operating Leverage and Further Upside Efficiencies 14 Source: Company information.
Slide 16: Driving like-for-like growth across our store portfolio
Existing Store Growth New Store Rollouts Operating Leverage and Efficiencies Further Upside Driving like-for-like growth across our store portfolio Performance Enhancement Action Plans Routine Review ✓ SKU evaluation ✓ Tactical pricing ✓ Clearly defined KPIs and timelines to track progress ✓ Price b
Slide 17: Happiness program momentum continues into Q1 2025
Existing store growth New store rollouts Operating Leverage and Efficiencies Further upside Happiness program momentum continues into Q1 2025 Enrollment Methods Value Proposition Q1 2025 update 1 Website 6.3 Million Points Loyalty Members 2 Mobile App 904K 65% Instant Discounts New Signups in Q1 202
Slide 18: New store rollouts on track for FY 2025 and medium term
Existing store growth New store rollouts Operating Leverage and Efficiencies Further upside New store rollouts on track for FY 2025 and medium term Medium term openings 5 stores opened ✓ On track to open 20 stores in FY 2025 in Q1’25 +2 Hypermarkets, Store locations +3 Express identified for stores
Slide 19: Operating leverage and efficiency
Existing store growth New store rollouts Operating Leverage and Efficiencies Further upside Operating leverage and efficiency Scale Advantage Cost Improvements Store Efficiencies ✓ Closer proximity to ✓ Leveraging existing ✓ Technology led customers workforce for new store enhancements in store roll
Slide 20: Customer focused private label strategy driving strong adoption
Existing store growth New store rollouts Operating Leverage and Efficiencies Further upside Customer focused private label strategy driving strong adoption Commitment to quality at affordable prices Q1 2025 update Availability and affordability $581 mn Sales in Q1 2025 Quality 9.5% Sales growth YoY
Slide 21: Digital expansion on track with strong Q1 2025 performance
Existing store growth New store rollouts Operating Leverage and Efficiencies Further upside Digital expansion on track with strong Q1 2025 performance Covering a wide customer base with diverse preferences Q1 2025 update $93 mn LuLu App E-commerce sales in Q1 2025 25.3% 26.1% Sales Growth YoY Increa
Slide 22: Summary
Summary YoY revenue growth of 7.3% in Q1 2025, supported by growth in all segments Stable EBITDA margins; net income margin expansion despite increased tax expense E-commerce business grew 25.3% YoY; customer base increased 26.1% Operating leverage and efficiency will continue to support margins 202
Slide 23: Q&A
4. Q&A 22