PETALING JAYA: Eco-Shop Marketing Bhd
is confident of sustained growth in the second half of its financial year ending May 31, 2026 (2H26), supported by a “healthy” pipeline of new store openings and an “under-penetrated” dollar store market in Malaysia.
Chief executive officer Jessica Ng Kim Teng said the group will continue expanding its store network, which surpassed 400 stores in the second quarter ended Nov 30, 2025 (2Q26), to deepen market reach, while enhancing the in-store experience through refurbishment initiatives.
She said targeted campaigns and promotions are also being rolled out to drive footfall and sales in the coming months.
“We remain confident in our long-term potential, underpinned by our differentiated value proposition in the dollar retail segment.
“We will also continue to strengthen our market share, enhance execution capabilities, and elevate customer experience to drive sustainable growth and returns,” she noted in a statement.
For 2Q26, Eco-Shop Marketing’s topline grew 2.9% to RM714.83mil from RM694.49mil in the corresponding quarter a year earlier.
The growth was driven by the expansion of its store network, with the net addition of 18 new stores during the quarter, bringing the total to 409 stores as at end-2Q26.
Correspondingly, the number of sales transactions increased 6.3% to 30.6 million in 2Q26.
Net profit for the quarter rose 15.5% to RM61.89mil from RM53.6mil in 2Q25, translating into an earnings per share of 1.08 sen from one sen, supported by improved margins.
The group’s gross profit margin improved to 32.7% from 27.5% in 2Q25, supported by selling price increases, a more favourable product mix and the strengthening of the ringgit in global procurement.
This offset the group’s selling, distribution and administrative expenses, which rose 17.2% year-on-year to RM150.7mil in 2Q26, mainly due to the expansion of its store network and higher staff costs following the minimum wage revision effective Feb 1, 2025.
For the first half of its financial year ending May 31, 2026 (1H26), Eco-Shop Marketing’s revenue grew 2.7% to RM1.4bil from RM1.36bil in 1H25, supported by the net addition of 86 new stores year-on-year.
Correspondingly, the number of sales transactions increased 7% to 59.9 million in 1H26.
Net profit for 1H26 grew 29.5% to RM120.65mil from RM93.19mil in 1H25, supported by stronger margins, where gross profit margin improved to 32.3% from 26.4%.
Eco-Shop Marketing declared a second interim dividend of half a sen per share, representing a payout ratio of 46% for the quarter, bringing the 1H26 dividend to one sen per share.
Yesterday, shares of Eco-Shop Marketing closed six sen or 3.8% higher at RM1.63.
