Higher Earnings Driven by Strategic Expansion
99 Speed Mart Retail Holdings Bhd has expressed strong optimism about its future growth trajectory after reporting a notable increase in earnings for both the second quarter and the first half of the year. The homegrown mini-market chain attributed its robust financial performance to a successful and consistent expansion strategy. The company’s footprint has grown significantly, with a net addition of 248 new outlets over the past year, bringing its total number of stores to 2,894 as of June 30. This growth is a core part of the company’s approach, which also focuses on enhancing the customer experience. According to founder and CEO Lee Thiam Wah, the group’s results are “underpinned by our consistent expansion strategy and our focus on enhancing shopper experience through greater convenience and accessibility,” a commitment further demonstrated by the decision to extend the operating hours of all its outlets from nine in the morning.
Financial Performance and Operational Efficiency
The company’s financial report for the second quarter of 2025 revealed impressive results. Revenue climbed by 11.9% year-on-year to RM2.71 billion, a direct result of the continuous outlet expansion and a rise in transaction volumes. The group also benefited from a boost in consumer spending, aided by government initiatives and the minimum wage increase that took effect in February. Despite a 17.5% increase in administrative and operating expenses—largely due to higher depreciation from the new outlets and wage adjustments—the company’s net profit for the quarter rose by a substantial 22.1% to RM153.21 million. This improved profitability was achieved through enhanced operational efficiency, which saw pre-tax and net profit margins improve by 0.5 percentage points, thanks to higher other operating income and better utility efficiency from the adoption of energy-efficient equipment.
Confident Outlook and Future Regional Vision
Looking ahead, 99 Speed Mart remains confident in its ability to maintain a positive growth trajectory. While the company is firmly rooted in its core domestic market, it is actively exploring new regional and international opportunities that align with its brand positioning and long-term strategic vision. Management has reiterated that its approach to expanding beyond domestic borders is “opportunistic yet strategic,” a method that allows the group to remain nimble and responsive to the evolving dynamics of the market. This forward-thinking approach is not just about gaining market share but is also designed to unlock new customer segments and revenue streams. Ultimately, the company’s strategic focus on both domestic expansion and prudent international exploration is aimed at reinforcing long-term value creation for all its stakeholders.
