99 Speed Mart Retail Holdings Berhad (99SMART) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 rose 8.2% year-over-year to RM2.42 billion, driven by outlet expansion and e-commerce platform launch.

• Net addition of 59 outlets in Q2, totaling 2,646 outlets as of June 2024; 123 new outlets added in 1H 2024.

• Profit before tax (PBT) increased 65.0% year-over-year to RM169.5 million; profit after tax (PAT) up 66.3% to RM125.6 million.

• Bulk sales e-commerce platform contributed incremental revenue of RM2.6 million in Q2 and RM6.4 million in 1H 2024.

Financial highlights

• Q2 2024 revenue: RM2,418.9 million (Q2 2023: RM2,235.6 million); 1H 2024 revenue: RM4,843.7 million (1H 2023: RM4,459.3 million).

• Q2 2024 gross profit: RM234.0 million, up 23.5% year-over-year; gross profit margin improved by 1.2%.

• Q2 2024 PBT: RM169.5 million (Q2 2023: RM102.7 million); PAT: RM125.6 million (Q2 2023: RM75.5 million).

• Basic EPS for Q2 2024: 1.57 sen (Q2 2023: 0.94 sen); 1H 2024: 3.23 sen (1H 2023: 2.28 sen).

• Net cash from operating activities in 1H 2024: RM300.0 million; cash and bank balances at period end: RM85.5 million.

Outlook and guidance

• Focus remains on strategic outlet expansion, especially in northern, east coast, and East Malaysia regions.

• Bulk sales e-commerce platform rolled out to southern Peninsular Malaysia in July 2024, with plans for further regional expansion.

• Commitment to ESG excellence and sustainable growth to enhance shareholder value.