99 Speed Mart optimistic on growth trajectory
In a filing with Bursa Malaysia, the home-grown mini market chain retailer said it had opened a net addition of 248 new outlets year-on-year (y-o-y), bringing the total to 2,894 outlets as of June 30, 2025.
'We remain optimistic in our sustainable growth trajectory, supported by ongoing footprint expansion and innovative retail programmes designed to meet the evolving needs of our customers,' it noted.
Its founder and chief executive officer Lee Thiam Wah, in a separate statement, said the group's financial results were 'underpinned by our consistent expansion strategy and our focus on enhancing shopper experience through greater convenience and accessibility.'
'We currently operate 2,894 outlets, with all outlets now (effective July 1, 2025) opening from nine in the morning to serve more customers,' he added.
For 2Q25, 99 Speed Mart's revenue rose 11.9% to RM2.71bil from RM2.42bil in the previous corresponding quarter, mainly driven by outlet expansion and increased transaction volumes.
The group also benefited from stronger consumer purchasing power following the minimum wage increase in February and government social assistance initiatives.
Total sales transactions rose 13.2% y-o-y to 128.9 million in 2Q25, though basket size was slightly lower at RM21 compared with RM21.30 a year earlier.
Correspondingly, net profit for the quarter under review rose 22.1% to RM153.21mil from RM125.53mil in 2Q24.
The improved results came despite a 17.5% rise in administrative and other operating expenses to RM348.2mil, largely due to higher depreciation from outlet expansion and the impact of minimum wage adjustments effective Feb 1.
Pre-tax profit and net profit margins improved to 7.5% and 5.7% respectively, up 0.5 percentage points from 2Q24, aided by higher other operating income and improved utility efficiency from adopting energy-efficient equipment.
Other operating income, which includes product display allowance, distribution centre allowance and marketing allowance, grew by 22.6% y-o-y to RM225.3mil in 2Q25 thanks to the increase in product display, in line with outlet expansion.
For 1H25, 99 Speed Mart's topline climbed 9.8% to RM5.32bil from RM4.85bil in 1H24, while net profit increased 14.6% to RM296.39mil from RM258.69mil.
Growth was driven by a 9.4% y-o-y increase in new outlets and a corresponding 10.5% rise in transaction volume to 248.4 million. Basket size averaged RM21.40 in 1H25.
Administrative and other operating expenses rose 15% y-o-y to RM676.5mil in 1H25, reflecting higher depreciation from new outlets and warehouses as well as increased staff costs from wage adjustments.
Meanwhile, the group reiterated that while it remains firmly rooted in its core markets, it will continue exploring regional and international opportunities aligned with its brand positioning and long-term vision.
'The group maintains an opportunistic yet strategic outlook when it comes to business expansion beyond domestic borders. This approach allows the Group to remain agile and responsive to evolving market dynamics, while unlocking new customer segments and revenue streams, ultimately reinforcing long-term value creation for our stakeholders,' it said.
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