KUALA LUMPUR (Nov 8): 99 Speed Mart Retail Holdings Bhd’s (KL:99SMART) net profit dipped 3.5% to RM107.16 million in the third quarter ended Sept 30, 2024 (3QFY2024) from RM111.06 million a year ago, dragged by higher administrative and other operating spending. This included one-off special staff bonuses and initial public offering (IPO) listing expenses totalling RM23.2 million.

Excluding the one-off expenses, 99 Speed Mart said in a statement its normalised net profit increased 13.2% to RM126 million in 3QFY2024 from RM111.27 million in 3QFY2023.

The mini market chain retailer also said its other operating income — comprising product display fees, incentive fees, distribution centre (DC) fees and advertising and promotional fees — has increased 15.1% to RM252.19 million from RM219.11 million, driven by an upward adjustment in the DC fee rate charged to suppliers.

Revenue for the current quarter rose 8.8% to RM2.55 billion from RM2.34 billion in the previous year, primarily driven by the expansion of the store network which saw a net addition of 51 new outlets. No dividend was declared for the quarter.

For the first nine months of FY2024, 99 Speed Mart's net profit rose 24.6% to RM365.85 million from RM293.69 million a year ago, while revenue increased 8.7% to RM7.39 billion from RM6.8 billion.

In the first nine months of FY2024, 99 Speed Mart added 177 new outlets, bringing its total outlets to 2,697 as of Sept 30, 2024.

“This marks a significant step towards our target of 3,000 outlets by 2025,” said 99 Holdings’ founder and chief executive officer Lee Thiam Wah.

Lee also noted that the group’s online bulk sales platform is also making promising contributions and progressing well — by having successfully expanded to the northern region in November and actively expanding its coverage to serve a broader area.

“Our growth strategy focuses on delivering affordable essentials and creating lasting value for our communities and stakeholders. With strategic growth initiatives underway, I am confident we will continue to drive sustainable and long-term success,” he added.

99 Speed Mart’s shares closed unchanged at RM2.32 on Friday, giving the group a market capitalisation of RM19.49 billion — the 27th largest across Bursa Malaysia. The stock, which made its market debut just two months ago on Sept 9, has risen 40.6% from its listing price of RM1.65.