99 Speedmart, a leading convenience store chain in Malaysia, is well-known for offering affordable daily essentials. Founded in 1987 by Lee Thiam Wah as a small sundry store in Klang, Selangor, the company has grown into a retail powerhouse with over 2,500 outlets nationwide.
Guided by its slogan, “NEAR n’ SAVE,” 99 Speedmart focuses on providing convenient access to essential goods while maintaining competitive pricing. Its compact, neighborhood-friendly stores are strategically located to serve both urban and rural communities, making it a trusted household name.
The company’s success is built on its efficient supply chain, robust distribution network, and dedication to customer satisfaction. By expanding rapidly and continuously innovating, 99 Speedmart plays a vital role in Malaysia’s retail sector.
3Q 2024 Financial Performance
For the third quarter ending Sept 30, 2024 (3Q 2024), 99 Speedmart Retail Holdings Bhd reported:
- Net profit: RM107.16 million, a slight dip from RM111.05 million in 3Q 2023.
- Revenue: RM2.55 billion, an 8.8% increase from RM2.34 billion in the same period last year, primarily driven by network expansion.
Expansion and Sales Growth
During the quarter, 99 Speedmart expanded its reach by adding 51 new outlets, bringing its total to 2,697 stores as of Sept 30, 2024.
Key Highlights for 3Q 2024:
- Sales transactions: Increased by 11.9% year-on-year, totaling 120.2 million transactions.
- Average basket size: Declined by 2.8%, dropping to RM21.20.
The company also saw success with its bulk sales online platform, launched in December 2023 and extended to the southern region of Peninsular Malaysia in July 2024. This platform contributed an additional RM7.4 million in revenue for the quarter.
Nine-Month Performance (9M 2024)
For the nine months ending Sept 30, 2024:
- Net profit: Increased to RM365.84 million, up from RM293.69 million in 9M 2023.
- Revenue: Rose to RM7.39 billion, compared to RM6.80 billion in the same period last year.
Strategic Growth and IPO
In September 2024, 99 Speedmart raised RM2.36 billion (approximately USD 542.8 million) through its initial public offering (IPO), the largest domestic IPO in seven years.
The funds will support:
Opening 250 new outlets annually, aiming for 3,000 outlets by 2027.
Establishing new distribution centers to enhance supply chain efficiency and maintain competitive pricing.
Outlook
99 Speedmart continues to focus on:
- Nationwide expansion to meet growing consumer demand.
- Enhancing operational efficiency through digital platforms and innovative solutions.
- Customer satisfaction by maintaining affordability and accessibility.
Despite challenges such as a decline in the average basket size, 99 Speedmart’s resilient business model ensures steady growth. Its robust infrastructure and dedication to innovation cement its position as a key player in Malaysia’s retail sector, fulfilling its mission to make daily essentials accessible and affordable for all.
99 Speedmart: Always “NEAR n’ SAVE” for Malaysia’s communities.
Subscribe to us:
