KUALA LUMPUR: Leading Malaysian retail chain 99 Speed Mart Retail Holdings Bhd reported a slight dip in its third-quarter net profit, falling to RM107.16 million, down from RM111.05 million in the same period last year.
However, the company saw an impressive 8.8% revenue growth, reaching RM2.55 billion compared to RM2.34 billion in Q3 2023. This growth was driven by the company’s expanding outlet network and increased transaction volume.
Expanding Operations and Sales Growth
99 Speed Mart has maintained its aggressive expansion strategy, adding 51 new outlets during the quarter, bringing its total footprint to 2,697 outlets as of September 30, 2024.
Key Highlights for Q3 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%, averaging RM21.20 per transaction.
- Bulk Sales Platform: Launched in December 2023, the platform expanded to the southern region of Peninsular Malaysia in July 2024, contributing RM7.4 million in revenue for the quarter.
Nine-Month Performance Overview
For the nine months ending September 30, 2024:
- Net Profit: Increased to RM365.84 million, up from RM293.69 million in the same period in 2023.
- Revenue: Rose to RM7.39 billion, compared to RM6.80 billion last year.
IPO and Strategic Growth Plans
In September 2024, 99 Speed Mart successfully launched its initial public offering (IPO), raising RM2.36 billion (approximately USD 542.8 million)—the largest domestic IPO in seven years.
Key Allocation of IPO Funds:
- Opening 250 new outlets annually, with a target of reaching 3,000 outlets by 2027.
- Establishing new distribution centers across Malaysia to improve supply chain efficiency and maintain competitive pricing.
Looking Ahead: Strategic Focus Areas
99 Speed Mart remains committed to:
- Nationwide Expansion: Scaling its footprint to reach more communities.
- Operational Efficiency: Enhancing supply chain and store operations for better service delivery.
- Digital Innovation: Leveraging platforms like its bulk sales service to strengthen customer engagement.
Despite challenges such as a decline in average basket size, the company’s focus on innovation, customer satisfaction, and operational excellence highlights its resilience in Malaysia’s highly competitive retail market.
A Trusted Retailer for Everyday Essentials
Guided by its "NEAR n' SAVE" slogan, 99 Speed Mart continues to deliver affordable daily essentials while enhancing accessibility for millions of customers. With its robust growth strategy, the company is poised to remain a key player in Malaysia’s retail landscape.
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