99SMart delivered a solid set of results, with quarter two 2025 revenue of RM2.7 bil (+12% year-on-year (YoY)) and core profit after tax of RM152.9 mil (+22% YoY).
Revenue expanded +4% supported by contributions from 61 new outlets and stronger transaction volumes, reflecting improved consumer spending capacity.
“Core profit after tax rose +7% to RM152.9 mil, underpinned by top line growth and higher operating income from product display fees, in line with outlet expansion,” said Hong Leong Investment Bank.
Top line growth of +12% YoY brought the first half of 2025 (1H25) to RM5.3 bil. The growth was driven by outlet network expansion and increased transaction volumes, benefiting from stronger consumer purchasing power following the min. wage increase and government social assistance initiative.
99SMart opened a net addition of 248 new outlets YoY bringing the total outlet count to 2,894.
Sales transactions also rose +13% YoY to 128.9 mil, while the average basket size fell slightly to RM21.00 vs RM21.30 in 2Q24. We remain upbeat on the group’s outlook, underpinned by its consistent execution and structural growth drivers.
99SMart continues to deliver steady top and bottom line expansion, anchored by its aggressive store rollout strategy, with at least 250 new outlets targeted in 2025 and an imminent 3,000 outlet milestone.
Recent initiatives, including extended operating hours (from 9am) and the nationwide “4 items for RM10” value campaign with dedicated Everyday Value Zones, should further entrench its value for money positioning and reinforce customer stickiness, particularly among cost conscious households.
On the macro front, we expect private consumption to remain resilient, supported by rising disposable incomes from wage adjustments and enhanced fiscal support.
Notably, the RM100 SARA credit program broadens beyond the B40 segment and represents a meaningful near term catalyst for retail spending.
Taken together, we believe 99SMart is well positioned to capture incremental wallet share, leveraging both its expansive footprint and value led proposition. —Aug 19, 2025
Main image: Malay Mail
