Lulu also saw a slowdown on the back of softer activity in March <\/p>\n
Lulu <\/strong>Retail<\/strong>\u2019s net income fell 32.8% on a decline in non-food sales in<\/strong> March<\/strong>, reaching USD 47 mn in 1Q 2026 , according to its earnings release<\/a>. Revenue dropped 2.9% y-o-y to USD 2 bn as non-food sales slowed down in March, offsetting sales growth in January and February. <\/p>\n Revenue performance was supported by new store openings and growth in food and consumer packaged goods<\/strong>, while lifestyle and electrical categories declined, particularly in March. Within the mix, higher-margin private label products increased by nearly 1% to 30.2% of sales, as customers shifted toward value offerings.<\/p>\n E-commerce continued to be a key growth driver, with sales rising 61% y-o-y to USD 150 mn<\/strong>, supported by higher transaction volumes on Lulu\u2019s own platform, which also benefited from a refreshed app and website rollout.<\/p>\n The company opened 11 new stores during the quarter <\/strong>\u2014 all in express format across the UAE, Saudi Arabia, Kuwait, and Oman. Lulu reaffirmed its full-year target of 18-20 stores. <\/p>\n \n Talabat\u2019s net income fell as it ramped up investments <\/p>\n Talabat<\/strong> reported an 18% y-o-y decline in net income to USD 87 mn in 1Q 2026<\/strong> due to increased investments, with some USD 25 mn deployed to scale its Talabat Mart vertical and strengthen its premium Talabat Pro offering, according to its earnings release (pdf)<\/a>. GMV rose 19% y-o-y to USD 2.7 bn, or 18% on a constant currency basis, while revenue increased 23% y-o-y to USD 1.0 bn. <\/p>\n Performance was supported by strong customer acquisition, improved Ramadan and Eid trading, and higher demand for at-home consumption<\/strong> driven by a shift to \u201ceat-at-home\u201d patterns and distance learning amid regional disruptions. GCC markets remained the largest contributor to GMV, generating USD 2.1 bn, up 12% y-o-y, while non-GCC markets \u2014 particularly Egypt, Jordan, and Iraq \u2014 recorded faster growth, with GMV rising 52% y-o-y to USD 563 mn during the quarter.<\/p>\n Revenue growth reflected higher contribution from Talabat Mart and broader multi-vertical activity<\/strong>, while lower commission rates and higher customer incentives weighed on margins. Profitability was also impacted by investments related to the company\u2019s \u201cEveryday App\u201d strategy and changes in GMV mix during the quarter.<\/p>\n The company raised its FY 2026 net income guidance to USD 300-330 mn<\/strong>, up c.7% from its prior forecast, while reaffirming guidance for GMV growth of 11-14%, revenue growth of 14-17%, adjusted EBITDA of USD 510-540 mn, and free cashflow of USD 370-400 mn. <\/p>\n RAK Ceramics hit by regional disruption, cushioned by UAE demand<\/p>\n RAK Ceramics came under pressure in 1Q 2026 as regional<\/strong> conflict disrupted <\/strong>exports and supply chains across key markets. <\/strong>Net income after tax fell 21.8% y-o-y to AED 38.2 mn, according to its earnings release (pdf)<\/a> and earnings presentation (pdf)<\/a>, while revenue slipped 2.0% to AED 760.7 mn. Management pointed to higher freight, energy, and ins. costs, alongside shipment disruptions linked to the closure of the Strait of Hormuz.<\/p>\n Some markets proved more resilient: <\/strong>UAE revenue rose 0.5% y-o-y on continued real estate activity, while Bangladesh revenue climbed 18.8% following political stabilization and stronger domestic demand. The Middle East (excluding the UAE and KSA), however, saw revenue fall 28.5% y-o-y to AED 23 mn. Sector-wise, faucets were a bright spot, with revenue rising 10.2% y-o-y to AED 123.1 mn amid ongoing production shifts from Europe to the UAE.<\/p>\n Looking ahead: <\/strong>Management said constrained imports could support market share gains in the UAE, Saudi Arabia, and wider GCC over the coming quarters, even as regional tensions continue pressuring costs. The company\u2019s greenfield tiles facility in Yanbu, Saudi Arabia also remains on track to come online in 1Q 2027.<\/p>\n \n ADA posts mixed 1Q earnings<\/p>\n Mixed quarter for ADA:<\/strong> ADX-listed Abu Dhabi Aviation (ADA) saw its net income fall 42.2% y-o-y to AED 124.4 mn in 1Q 2026, according to the firm\u2019s earnings release (pdf)<\/a>. The group\u2019s revenue rose 1.4% y-o-y to AED 2 bn during the quarter, supported mainly by its MRO business and general aviation performance.<\/p>\n Behind the numbers:<\/strong> The bottom-line drop was driven by an AED 58.3 mn fair-value loss on financial assets, compared with an AED 6.1 mn gain a year earlier. ADA\u2019s top line was supported by the MRO segment, which accounted for 88.3% of group revenue on sustained fleet-support demand at GAL and continued OEM partnership development at Ammroc, while General Aviation remained broadly stable on stronger cargo operations at Maximus Air.<\/p>\n \n Dewa powers into record territory <\/p>\n <\/a> <\/p>\n Dubai <\/strong>Electricity and Water Authority (Dewa) posted its strongest first quarter<\/strong> on record<\/strong>, with net income up nearly 90% y-o-y to 941.1 mn, while revenues climbed 8.2% y-o-y to AED 6.5 bn, according to its financials (pdf)<\/a> and a separate earnings release (pdf)<\/a>. <\/p>\n The numbers came alongside fresh demand growth across Dubai\u2019s utility network. <\/strong>Dewa generated a record 11.1 TWh of electricity during the quarter, up 5.7% y-o-y, while desalinated water production rose 5.5% to 37.6 bn imperial gallons. Clean energy generation also hit a record 2.1 TWh. During the quarter, Dewa commissioned six substations and a reverse osmosis plant.<\/p>\n The utility also reiterated its dividend plans<\/strong>, after paying AED 3.1 bn to shareholders in April for 2H 2025. Subject to approvals, another AED 3.1 bn dividend is expected in October for 1H 2026. <\/p>\n \n Steady quarter, familiar formula for Dubai Investments<\/p>\n Dubai <\/strong>Investments reported largely flat 1Q earnings as<\/strong> net income edged up <\/strong>to AED 169 mn from AED 167.2 mn<\/strong>, according to its financials (pdf)<\/a> and a separate earnings release (pdf)<\/a>. Revenue came in at AED 765.7 mn in 1Q 2026, a decline of 6.9% y-o-y, as inflows from finance income slipped and tax expenses went up. The group pointed to stable recurring income from its ground-rent infrastructure platform and other income-generating assets as a key support for the quarter, alongside steady contributions from its manufacturing and contracting businesses.<\/p>\n \n Agthia keeps margins moving<\/p>\n Water and food segments keep Agthia buoyant: <\/strong>Stronger margins in Agthia\u2019s water and food business helped offset pressure felt across other segments, helping the Abu Dhabi-listed food and beverage giant kick off 2026 with a 12.5% y-o-y rise in net income to AED 96.9 mn, according to its financials (pdf)<\/a> and a separate earnings release (pdf)<\/a>. Revenue climbed 3.3% y-o-y to AED 1.3 bn in 1Q 2026.<\/p>\n The quarter\u2019s revenue got a lift from AED 51.4 mn in one-off agri-business sales<\/strong> tied to the UAE\u2019s food security program. Strip that out and underlying revenue was down 0.7% y-o-y. <\/p>\n Water and food remained a key segment<\/strong>, with revenue climbing 14.6% y-o-y to AED 330.5 mn, supported by stronger bottled water demand in the UAE. Agri-business revenues rose 13% y-o-y to AED 382.2 mn, while snacking revenues fell 13% y-o-y to AED 357 mn, despite its Abu Auf brand seeing 27.3% growth.<\/p>\n \n Alef Education starts 2026 on steady footing<\/p>\n Abu<\/strong> Dhabi-based AI education group Alef Education posted a 2.5% y-o-y rise <\/strong>in net income to AED 118.1 mn in 1Q 2026<\/strong>, according to its latest earnings release (pdf)<\/a> and separate management discussion and analysis report (pdf)<\/a>. Revenues were broadly flat, up 0.6% y-o-y at AED 180.8 mn, reflecting stable performance in its core contracts and gains from private and B2B\/B2G activity. <\/p>\n Behind the results: <\/strong>Management cited a continued cost efficiency drive, alongside savings across software, service, and support expenses, as boosting its bottom line. An uptick in inflows from treasury income also buoyed results.<\/p>\n Dividends: <\/strong>Alef has confirmed a dividend payment of AED 433 mn for 2025, equal to 90% of that year\u2019s net income. <\/p>\n","protected":false},"excerpt":{"rendered":" Lulu also saw a slowdown on the back of softer activity in March Lulu Retail\u2019s net income fell 32.8% on a decline in non-food sales in March, reaching USD 47 mn in 1Q 2026 , according to its earnings release. Revenue dropped 2.9% y-o-y to USD 2 bn as non-food sales slowed down in March, […]<\/p>\n","protected":false},"author":1,"featured_media":117038,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1596],"tags":[1195,984,2291,681,237,7,1978,641,2326],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-117037","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-watch","tag-abu-dhabi-aviation","tag-agthia","tag-alef","tag-dubai-investments","tag-earnings-watch","tag-enterpriseam-uae","tag-lulu","tag-lulu-group","tag-rak-ceramics","wpautop","entry"],"acf":{"mongo_id":"7aa0e428-c95b-450e-8c99-743f6260b9b7","order":"9","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/10\/2667.jpg","photo_position":"above","homepage_title":"","full_issue_title":"1Q results from Lulu, Talabat, ADA, Dewa, RAK Ceramics, Dubai Investments, Agthia, and Alef","related_issue":[117022],"teaser":""},"yoast_head":"\n