99 Speed Mart Retail Holdings Bhd, which is slated to debut on Bursa Malaysia’s Main Market on September 9, reported a 66.3% increase in its second-quarter net profit for FY2024.

The net profit for the quarter ended June 30, 2024 (2Q24) surged to RM125.53 million, up from RM75.49 million in the same quarter the previous year, driven by higher sales from an expanding network of outlets and increased other operating income.

The company’s operating profit reached RM476.94 million, with nearly half derived from other operating income, which includes product display fees, incentive fees, distribution center fees, and advertising and promotional fees.

This other operating income grew by 23.5% to RM237.4 million, mainly due to an increase in the distribution center fee rate charged to suppliers.

Quarterly revenue rose by 8.2% to RM2.42 billion, supported by the addition of 59 new outlets, bringing the total to 2,646 as of June 30, 2024.

While total transactions increased by 12.9% to 113.8 million, the company saw a 4.2% decline in the average basket size, which dropped to RM21.30. No dividend was declared for the quarter.

For the first half of FY2024, 99 Speed Mart’s net profit grew by 41.7% to RM258.87 million, with revenue rising by 8.6% to RM4.84 billion, aided by the net addition of 123 outlets.

Its CEO Lee Thiam Wah credited the strong performance to strategic outlet expansion and the successful launch of their e-commerce bulk sales platform, highlighting the company’s commitment to enhancing customer convenience and value.

99 Speed Mart’s listing is poised to be Malaysia’s largest initial public offering (IPO) in seven years, with plans to raise a total of RM2.36 billion. –TMR