PETALING JAYA: Eco-Shop Marketing Bhd
expects earnings growth to be driven by new store openings, citing an underpenetrated dollar store market in Malaysia with long-term growth potential.
For the third quarter ended Feb 28, 2026 (3Q26), Eco-Shop’s net profit was up by 16% year-on-year (y-o-y) to RM71.3mil or earnings per share of 1.24 sen, supported by selling price adjustments, a more favourable product mix, and the strengthening of the ringgit against procurement currencies.
Eco-Shop said margin improvement was also supported by a reclassification of certain supplier rebates from “other income” to cost of goods sold (COGS).
Revenue increased by 1% y-o-y to RM743.7mil in 3Q26, primarily driven by the continued expansion of its store network, with a net addition of 20 new stores during 3Q26.
Total store count increased from 349 stores as at Feb 28, 2025 to 429 stores as at Feb 28, 2026. Correspondingly, the number of sales transactions rose by 4.5% in 3Q26, despite part of the quarter impacted by the Ramadan period.
For the nine-month period ended Feb 28, 2026 (9M26), net profit surged by 24% y-o-y supported by selling price adjustments, a more favourable product mix, and the strengthening of the ringgit. The improvement was also aided by the reclassification of certain supplier rebates from “other income” to COGS during the period.
Revenue rose by 2.1% y-o-y to RM2.14bil, primarily driven by the net addition of 80 new stores y-o-y.
Chief executive officer Jessica Ng said Eco-Shop delivered another quarter of “commendable growth”, underpinned by the continued expansion of the company’s store network.
“For 9M26, we opened 65 new stores and are on track to outperform our initial target of 70 new stores, supported by a strong pipeline of openings in the final quarter of FY26. This accelerating pace of expansion reflects the scalability of our operating model and our ability to identify and penetrate underserved locations.
“As we expand our footprint, we are also undertaking ongoing store refurbishment initiatives and product refreshment efforts to enhance the overall customer experience,” she said in a statement.
Ng said the group remains focused on deepening customer engagement by enhancing its customer relationship management (CRM) capabilities to drive customer loyalty and strengthen its rewards programmes.
“Our upcoming enhanced CRM platform will enable us to deliver more targeted engagement and increase customer lifetime value, building on the strong spending patterns observed among our members. Collectively, these initiatives, underpinned by disciplined cost management and strong execution, are expected to further strengthen our earnings profile moving forward,” she said.
Ng noted that with a population of nearly 35 million, the Malaysian dollar store market remains underpenetrated and continues to offer compelling long-term growth potential.
“The increasing popularity of dollar store formats, driven by consumers’ heightened focus on value for money and product variety, reinforces the relevance of our offerings. These trends provide a strong foundation for us to scale further and capture a larger market share,” she said.
