KUALA LUMPUR:
Leading Malaysian retail chain 99 Speed Mart Retail Holdings Bhd reported a modest decline in net profit for 3Q 2024, with earnings dropping to RM107.16 million, down from RM111.05 million in the same quarter of 2023.
However, the company delivered an 8.8% increase in revenue, reaching RM2.55 billion, compared to RM2.34 billion in the previous year. The growth was fueled by the expansion of its retail network and a surge in sales transactions.
Expanding Network and Increased Transactions
99 Speed Mart continued its robust expansion strategy, adding 51 new outlets during the quarter, bringing its total to 2,697 outlets as of September 2024.
Key Highlights for 3Q 2024:
- Sales Transactions: Increased by 11.9% year-on-year (y-o-y) to 120.2 million transactions.
- Average Basket Size: Declined by 2.8%, reducing to RM21.20.
- Bulk Sales Platform: The online bulk sales platform, launched in December 2023, expanded to the southern region of Peninsular Malaysia in July 2024, contributing an additional RM7.4 million in revenue for the quarter.
Nine-Month Performance (9M 2024)
For the nine months ending Sept 30, 2024:
- Net Profit: Increased to RM365.84 million, up from RM293.69 million in the same period of 2023.
- Revenue: Rose to RM7.39 billion, compared to RM6.80 billion in 9M 2023.
IPO and Strategic Growth Initiatives
In September 2024, 99 Speed Mart made its debut 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.
Fund Allocation from IPO:
- Outlet Expansion: Plans to open 250 new outlets annually, aiming for 3,000 outlets by 2027.
- Distribution Centers: Establishing new facilities to enhance supply chain efficiency and maintain competitive pricing.
Outlook and Strategy
99 Speed Mart is committed to sustaining growth through:
- Nationwide Expansion: Continuously increasing its outlet footprint to serve more communities.
- Operational Efficiency: Optimizing supply chain logistics and store operations to support cost-effective pricing.
- Digital Innovation: Leveraging its bulk sales platform and other digital tools to boost customer engagement and satisfaction.
Despite challenges such as a reduced average basket size, the company’s focus on customer satisfaction, innovation, and efficiency ensures resilience in Malaysia’s competitive retail sector.
Continuing the Mission
With its "NEAR n' SAVE" slogan, 99 Speed Mart reaffirms its mission of providing affordable essentials to Malaysians nationwide. As a key player in the retail industry, the company is well-positioned for sustained growth, benefiting millions of customers across the country.
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