PETALING JAYA: Eco-Shop Marketing Bhd
will remain vigilant in managing inflationary and structural cost pressures, including higher electricity tariffs, the expanded Sales and Service Tax and the 2% Employees Provident Fund contribution for foreign workers.
In a filing with Bursa Malaysia, the largest dollar chain store operator in Malaysia said it is strengthening its resilience through supply chain efficiencies, strategic pricing, productivity improvements, and close collaboration with its suppliers.
For the fourth quarter ended May 31, 2025 (4Q25), Eco-Shop’s net profit dipped to RM49.41mil from RM63.27mil in the previous corresponding period, while revenue rose to RM688.98mil from RM640.67mil a year earlier.
Eco-Shop said revenue growth was primarily driven by the continued expansion of the group’s store network, with the net addition of 22 new stores in 4Q25 versus 19 in 4Q24.
“The total store count increased from 297 stores in 4Q24 to 371 stores in 4Q25. Correspondingly, the number of sales transactions increased 12.4% to 28.9 million in 4Q25.
“The price increase was effected on April 14, 2025, which raised the selling price of Eco-Shop products to RM2.60 in Peninsular Malaysia and RM2.80 in East Malaysia, contributing to the group’s revenue uplift.”
The company added that gross profit growth outpaced revenue, increasing by 26.1% to reach RM220.1mil.
“Gross profit margin improved to 31.9%, compared to 27.2% in 4Q24, supported by selling price increase, a more favourable product mix and the strengthening of the ringgit in global procurement.
“The group’s other income / expenses decreased by 11.3% to RM10.4mil, mainly due to fair value loss on derivative financial instruments.”
In 4Q25, Eco-Shop said selling, distribution, and administrative expenses rose by 65.1% to RM155.4mil, primarily driven by the expansion of store network, full-quarter impact of the minimum wage revision effective Feb 1, 2025 and one-off initial public offering (IPO) listing fees which amounted to RM7.6mil.
The company was listed on the Main Market of Bursa Malaysia on May 23.
For the financial year ended May 31, 2025, Eco-Shop’s net profit rose to RM204.32mil from RM177.28mil in the previous corresponding period, while revenue grew to RM2.79bil from RM2.4bil previously.
The company said revenue growth was 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 profit after tax (adjusted for one-off IPO expenses of RM9.4mil) grew in line with revenue, rising 17% to RM213.7mil compared to the previous financial year.”
“The company declared an interim single-tier dividend of one sen per ordinary share or approximately RM57.5mil in respect of the financial year ending May 31, 2025, to be paid on Aug 26, 2025.
The entitlement date for the dividend falls on Aug 12, 2025.
Commenting on the performance, chief executive officer Jessica Ng said she remains optimistic on Eco-Shop’s outlook despite ongoing macroeconomic uncertainties and prevailing challenges.
“Our confidence is underpinned by the continued expansion of our store network and rising consumer demand for value-driven retail.
“Malaysia’s value retail segment remains significantly under-penetrated compared to more mature markets such as Japan, Canada, and the United States, offering strong long-term growth potential.”
