KUALA LUMPUR (Feb 24): 99 Speed Mart Retail Holdings Bhd’s (KL:99SMART) net profit increased 16.8% to RM124.42 million for the fourth quarter ended Dec 31, 2024 (4QFY2024) from RM106.54 million a year ago, boosted by higher fees income.

The fees income, mainly comprising product display fees, distribution centre fees, and advertising and promotional fees, rose 25.1% year-on-year to RM235.7 million from RM188.39 million, according to the group's bourse filing on Monday.

Revenue increased 7.3% to RM2.58 billion from RM2.41 billion in 4QFY2023, primarily driven by positive sales contributions from the net expansion of 81 outlets during the quarter. Its total outlet count stood at 2,778 as of Dec 31, 2024.

No dividend was declared for the quarter.

For the full year, 99 Speed Mart's net profit rose 22.5% to RM490.27 million from RM400.227 million in FY2023, while total revenue grew 8.3% to RM9.98 billion from RM9.214.

This is below the consensus forecast of a net profit of RM525 million and revenue of RM10.21 billion, according to Bloomberg data.

In a press release, the mini market operator's founder and chief executive officer Lee Thiam Wah expressed his satisfaction with the group's financial performance, attributing it to the group's commitment to operational efficiency and network expansion.

“2024 has been a milestone year for us, not only did we successfully list the company, we also managed to meet our 250 new outlets target by opening 252 outlets in 2024. Our expansion continues as we enter Sarawak, a new and promising market for the company, with our Miri distribution centre and outlets set to operate in March 2025,” Lee said.

The Miri distribution centre, with a built-up area of 15,000 sq ft, is expected to support 60 to 80 outlets in and surrounding Miri, the group said in its filing.

“Looking ahead, we remain focused on our strategic goals, including reaching 3,000 outlets by end-2025 and further expand our bulk sales e-commerce platform, which has seen encouraging growth across multiple regions. Backed by the proceeds from our IPO, we are well poised to accelerate our expansion and meet growing demands,” Lee added.

Shares of 99 Speed Mart closed up one sen or 0.5% at RM2.14 on Monday, giving the group a market capitalisation of RM17.98 billion. The stock has been in a downward trend over the past two months, falling 18%.