KUALA LUMPUR: Leading retail chain 99 Speed Mart Retail Holdings Bhd reported a slight drop in net profit for the third quarter ended Sept 30, 2024 (3Q 2024), with earnings falling to RM107.16 million, down from RM111.05 million in the same period last year.
Despite the decline in profit, the company achieved an impressive 8.8% surge in revenue, reaching RM2.55 billion, up from RM2.34 billion in 3Q 2023. The revenue growth was largely attributed to its expanding network of outlets and increased sales transactions.
Expanding Outlets and Sales Transactions
99 Speed Mart continued its aggressive expansion, adding 51 new outlets during the quarter, bringing its total to 2,697 outlets as of Sept 30, 2024.
Key Highlights for 3Q 2024:
- Sales Transactions: Increased by 11.9% y-o-y to 120.2 million transactions.
- Average Basket Size: Declined by 2.8%, dropping to RM21.20.
- Bulk Sales Platform: The company’s bulk sales online platform, launched in December 2023, expanded to the southern region of Peninsular Malaysia in July 2024, contributing RM7.4 million in revenue for the quarter.
Nine-Month Performance
For the nine months ending Sept 30, 2024 (9M 2024):
- Net Profit: Increased to RM365.84 million, up from RM293.69 million in 9M 2023.
- Revenue: Rose to RM7.39 billion, compared to RM6.80 billion in the same period last year.
IPO and Strategic Growth Initiatives
In September 2024, 99 Speed Mart successfully debuted on the Malaysian stock market, raising RM2.36 billion (approximately USD 542.8 million) in the largest domestic initial public offering (IPO) in seven years.
Funds from the IPO are earmarked for:
- Opening 250 new outlets annually, targeting 3,000 outlets by 2027.
- Establishing new distribution centers across Malaysia to enhance supply chain efficiency and support competitive pricing.
Outlook and Strategy
99 Speed Mart remains focused on:
- Nationwide Expansion: Increasing its outlet footprint to serve more communities.
- Operational Efficiency: Optimizing supply chain and store operations.
- Digital Innovation: Leveraging its bulk sales platform and other digital initiatives to enhance customer engagement.
Despite challenges such as a reduced average basket size, the company’s emphasis on customer satisfaction, innovation, and efficient operations reflects its resilience in Malaysia’s competitive retail landscape.
With its "NEAR n' SAVE" slogan, 99 Speed Mart continues to solidify its position as a key player in the country’s retail industry, providing affordable essentials to customers nationwide.
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