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Eco-Shop reports 17% surge in core net profit for FY2025

KUALA LUMPUR: Eco-Shop Marketing Berhad, a player in Malaysia’s dollar store retail sector, has released its fourth quarter financial results for the three months ended 31 May 2025 (4Q FY2025) today.

On a full-year basis for the twelve months ended May 31, 2025 (FY2025), the Group achieved new record highs for both revenue and profit after tax (PAT).

Revenue increased by 16% to RM2.8 billion, underpinned by the net addition of 74 new stores during the financial year.

Despite higher operating costs arising from our expanded store network and the implementation of minimum wage policies, core PAT (adjusted for one-off IPO expenses of RM9.4 million) grew in line with revenue, rising 17% to RM213.7 million compared to the previous financial year.

In 4Q FY2024, the Group recorded revenue of RM689.0 million, representing an 8% increase from RM640.7 million in the same quarter last year.

Core PAT for the quarter stood at RM57.0 million, compared to RM63.4 million in the previous year’s corresponding quarter.

Together with this set of results, the Company declared an interim single-tier dividend of 1.0 sen per ordinary share or approximately RM57.5 million in respect of the financial year ending May 31, 2025, to be paid on August 26, 2025. The entitlement date for the dividend falls on August 12, 2025.

CEO Jessica Ng said the company remains optimistic about its outlook despite ongoing macroeconomic uncertainties.

“Our confidence is underpinned by the continued expansion of our store network and rising consumer demand for value‑driven retail,” she said.

Ng noted that Malaysia’s value retail segment is still “significantly underpenetrated” compared to mature markets like Japan, Canada and the United States, presenting strong long‑term growth potential.

“As consumer preferences shift toward affordability and convenience, Eco-Shop is well‑positioned to scale further and increase its relevance nationwide,” she added.

On challenges, Ng acknowledged rising cost pressures from higher electricity tariffs, the expanded Sales and Services Tax and EPF contributions for foreign workers.

“We are strengthening our resilience through supply chain efficiencies, strategic pricing, product enhancements and close collaboration with suppliers,” she said.

She also addressed softer same-store sales growth following the mid‑April price adjustment.

“Consumers are taking time to adapt to the new pricing. In the meantime, we are rolling out targeted marketing campaigns to boost footfall,” she said.

Despite the temporary dip, Ng said margins and performance are expected to remain healthy.

“Our store network expansion continues to be a key long‑term strategy for deeper market penetration. We remain focused on delivering strong, sustainable financial performance over the long term,” she said.

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