99 Speed Mart reports higher 2Q24 revenue

PETALING JAYA: Main Market-bound 99 Speed Mart Retail Holdings Bhd reported a revenue of RM2.4bil for the second quarter ended June 31, 2024, reflecting a RM183.3mil or 8.2% year-on-year (y-o-y) increase, mainly attributed to higher sales led by the contribution from new outlets and positive impact from the bulk sales e-commerce platform.

In a statement, the country’s largest home-grown mini market chain retailer said total sales transactions also rose by 12.9% to 113.8 million transactions y-o-y, partially offset by a lower average basket size, which reduced by 4.2% to RM21.30.

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Gross profit (GP) grew by RM44.5mil or 23.5% to RM234mil, in line with the increase in revenue while GP margin improved by 1.2% primarily due to higher promotional discounts and prompt payment discounts for the goods purchased.

Additionally, net profit rose by RM50mil or 66.3% to RM125.5mil mainly due to the reasons stated above and the upward adjustment of the distribution centre fee rates charged to the suppliers for the handling of products starting from the first quarter of the financial year ending Dec 31, 2024.

For the six-months period ended June 30, 2024, 99 Speed Mart’s revenue rose by 8.6% y-o-y, registering a cumulative revenue of RM4.8bil while net profit grew by 41.6% to RM258.7mil.

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99 Speed Mart founder and chief executive officer Lee Thiam Wah said the group’s strong financial performance, driven by strategic outlet expansion and successful launch of our e-commerce bulk sales platform, underscores the company’s commitment to provide greater convenience and value to customers.

“Looking ahead, our upcoming listing on the Main Market of Bursa Securities represents a pivotal milestone for the Company as we continue to drive sustainable growth and deliver long-term value for our stakeholders.”

99 Speed Mart plans to list on the Main Market of Bursa Malaysia Securities on Sept 9, 2024.