PETALING JAYA: 99 Speed Mart Retail Holdings Bhd expects further revenue growth and sustained profitability based on its expansion plans.
The company aims to open at least 250 outlets this year and plan to have around 3,000 outlets nationwide by year-end.
It also intends to expand its bulk sales eCommerce platform to serve customers in the East Coast region of Peninsular Malaysia and other regions where it operates.
For the fourth quarter (4Q24) of its financial year ended Dec 31, 2024 (FY24), 99 Speed Mart posted a revenue of RM2.58bil, a 7.3% year-on-year (y-o-y) increase.
Pre-tax profit and net profit rose by 15.4% and 16.8% y-o-y, reaching RM165.5mil and RM124.4mil, respectively.
The group said in a statement that excluding one-off initial public offering (IPO) listing expenses of approximately RM2mil, the normalised pre-tax profit and net profit would have seen y-o-y growth of 16.4% and 18.1%, respectively.
Normalised pre-tax profit and net profit margin were 6.5% and 4.9%, respectively, while total sales transactions grew 10.7% to 120.7 million.
99 Speed Mart also expanded its footprint with 81 new outlets in 4Q24, bringing its total store count to 2,778.
“We are pleased to deliver another strong financial performance, driven by our commitment to expand our outlet network and operational efficiency.
"2024 has been a milestone year for us, not only did we successfully list the company, we also managed to meet our 250 new outlets target by opening 252 outlets in 2024," 99 Speed Mart founder and chief executive officer Lee Thiam Wah said in the statement.
"Our expansion continues as we enter Sarawak, a new and promising market for the company, with our Miri distribution centre and outlets set to operate in March 2025.”
Looking ahead, Lee said the group remains focused on its strategic goals, including reaching 3,000 outlets by end-2025 and further expanding its bulk sales eCommerce platform, which has seen encouraging growth across multiple regions.
“Backed by the proceeds from our IPO, we are well poised to accelerate our expansion and meet growing demands,” he added.
For FY24, 99 Speed Mart’s revenue reached RM9.98bil, an 8.3% increase from FY23.
Pre-tax profit and net profit rose by 22.4% and 22.5%, respectively, to RM658.6mil and RM490.3mil.
Moving forward, the group expects the cascading impact of the minimum wage adjustment to enhance consumers' purchasing power and stimulate household consumption.
As disposable income rises, it anticipates a shift towards premium products, particularly among higher-income groups.
"In response, we will continue to assess our product mix more frequently, ensuring a curated selection that meets the diverse needs of all income groups.
"This approach will enhance the shopping experience by offering a wider variety of options that cater to different consumer preferences, ultimately boosting sales opportunities," 99 Speed Mart said.
