99 Speed Mart’s Strong Q2 2025: Double-Digit Growth and Shareholder Rewards
As a household name in Malaysia, 99 Speed Mart Retail Holdings Berhad continues to be a key player in the nation’s retail landscape. The company has just released its financial results for the second quarter ended June 30, 2025, and the numbers tell a story of robust growth and strategic expansion. This report reveals a significant 22% jump in net profit, driven by an expanding store network and strong consumer demand. Let’s dive deep into the key highlights of their performance.
Core Data Highlights: A Look at the Numbers
99 Speed Mart delivered an impressive performance in the second quarter, showcasing strong growth when compared to the same period last year. The core financial indicators point towards a healthy and expanding business.
Q2 2025 (Current Quarter)
Revenue: RM2,707.8 million
Profit Before Tax (PBT): RM203.0 million
Net Profit (PAT): RM153.2 million
Earnings Per Share (EPS): 1.82 sen
Q2 2024 (Comparative Quarter)
Revenue: RM2,419.9 million
Profit Before Tax (PBT): RM169.5 million
Net Profit (PAT): RM125.5 million
Earnings Per Share (EPS): 1.49 sen
The company’s revenue surged by 11.9%, a result directly linked to its aggressive outlet expansion. With a net addition of 248 new stores over the past year, the total count now stands at an impressive 2,894. This expansion led to a 13.2% increase in sales transactions, demonstrating growing customer traffic. While the average spending per transaction (basket size) saw a slight dip from RM21.3 to RM21.0, the sheer volume of new customers more than compensated for it.
Profitability saw an even more significant boost. Profit Before Tax (PBT) grew by 19.8%, and Net Profit After Tax (PAT) climbed by a remarkable 22.0%. This enhanced profitability was supported by higher other operating income, such as product display allowances from suppliers, and improved operational efficiency, particularly in managing utility costs through the adoption of energy-saving equipment.
Rewarding Shareholders
In a clear sign of confidence and commitment to its investors, the Board of Directors declared a first interim dividend of RM0.0225 per share, amounting to a substantial payout of approximately RM189.0 million for the financial year.
Behind the Growth: Financial Health and Strategy
A closer look at the company’s financial statements reveals a solid foundation supporting its growth trajectory. The balance sheet strengthened, with total assets growing to RM3.9 billion. More importantly, cash flow from operating activities for the first six months of 2025 was a healthy RM466.8 million, a significant increase from RM300.0 million in the same period last year. This strong cash generation is crucial as it funds further expansion and shareholder returns.
Navigating Challenges and Seizing Opportunities
While the growth story is compelling, the report also acknowledges challenges. Administrative and other operating expenses rose by 17.5%, primarily due to depreciation from the new outlets and the impact of the minimum wage adjustment implemented earlier in the year. This highlights the ongoing pressure of rising operational costs in the retail sector.
However, 99 Speed Mart is proactively addressing the market with several strategic initiatives:
- Value-Driven Campaigns: The launch of the “4 items for RM10” series and dedicated “Everyday Value Zones” aims to attract and retain cost-conscious consumers, reinforcing its brand promise of affordability.
- Enhanced Convenience: Extending operating hours nationwide from 9:00 AM provides customers with greater accessibility, aligning with its “Near and Save” ethos.
- Future Expansion: The Group is actively exploring growth opportunities in regional and international markets, signaling a long-term vision beyond domestic borders.
- ESG Commitment: A continued focus on sustainability through the installation of solar systems, use of green-engine trucks, and energy-efficient equipment is expected to generate long-term cost savings while contributing to environmental goals.
Summary and Outlook
99 Speed Mart’s second-quarter results for 2025 demonstrate a company in a strong growth phase. The successful execution of its store expansion strategy, coupled with effective cost management and strategic marketing, has translated into impressive financial gains and robust shareholder returns. While rising operational costs remain a key factor to monitor, the company’s proactive measures and forward-looking strategies position it well to navigate the dynamic retail environment. This analysis is for informational purposes only and should not be considered as financial advice. All investors should conduct their own due diligence.
Key takeaways from this quarter’s report include:
- Robust Top and Bottom-Line Growth: The double-digit increase in both revenue and net profit underscores the success of its core business model.
- Effective Expansion Strategy: The continuous addition of new outlets remains the primary driver of growth, successfully capturing a larger market share.
- Strong Shareholder Returns: The significant dividend payout highlights the company’s healthy cash flow and its commitment to rewarding investors.
- Proactive Future Planning: Initiatives focused on value, convenience, international exploration, and ESG reflect a well-rounded strategy for sustainable long-term growth.
Final Thoughts
From my professional viewpoint, 99 Speed Mart’s report paints a picture of a resilient and strategically-focused retailer. Its ability to grow its physical footprint while simultaneously boosting profitability in an inflationary environment is noteworthy. The focus on value-driven campaigns and ESG initiatives also positions it well for long-term sustainable growth.
What are your thoughts on 99 Speed Mart’s expansion strategy? Do you think their value campaigns will keep customers loyal in the current economic climate? Share your views in the comments below!
