KUALA LUMPUR (Jan 26): Eco-Shop Marketing Bhd (KL:ECOSHOP) said its net profit rose more than 15% in the third quarter, driven by higher revenue and improved margins.

Net profit for the three months ended Feb 28, 2026 (3QFY2026) stood at RM71.3 million, or 1.24 sen per share, compared with RM61.7 million, or 1.15 sen per share, a year earlier, the dollar-store retailer said in a bourse filing on Tuesday.

Revenue edged up 1% year-on-year to RM743.7 million from RM736.4 million, driven by continued expansion of its store network.

Eco-Shop added a net 20 stores during the quarter, bringing its total to 429 outlets as at Feb 28, 2026, compared with 349 stores a year earlier. Sales transactions rose 4.5% to 31.3 million during the quarter, despite part of the period being affected by Ramadan.

Gross profit rose 21.8% to RM251.2 million from RM206.2 million, while gross profit margin improved to 33.8% from 28% a year earlier.

The margin expansion was supported by selling price adjustments, a more favourable product mix and a stronger ringgit against procurement currencies, as well as the reclassification of certain supplier rebates from other income to cost of goods sold.

Eco-Shop declared an interim dividend of 0.55 sen per share, payable on May 26, bringing its total dividend for the year to 1.55 sen per share.

For the cumulative nine months ended Feb 28, 2026 (9MFY2026), net profit rose nearly 24% to RM191.9 million from RM154.9 million, while revenue ticked up 2% to RM2.14 billion from RM2.1 billion.

Looking ahead, Eco-Shop expects to exceed its target of 70 new store openings for FY2026, having added 65 outlets in the first nine months, supported by a strong pipeline in the final quarter.

The group said the expansion reflects the scalability of its operating model and its ability to penetrate underserved locations, while ongoing store refurbishments and product refresh efforts aim to enhance customer experience.

It is also strengthening customer engagement through enhanced customer relationship management capabilities and rewards programmes, which, alongside disciplined cost management, are expected to support earnings growth.

Shares in Eco-Shop fell one sen, or 0.8%, to RM1.28 at Tuesday’s market close, valuing the group at RM7.37 billion.