4 days ago
- Business
- Malaysian Reserve
Eco-Shop's 4Q profit slips 10% on higher costs, but FY2025 earnings rise 17%
Eco-Shop Marketing Bhd posted a 10.1% year-on-year decline in adjusted net profit for the fourth quarter ended May 31, 2025 (4Q25), as higher expenses from store expansion, wage hikes and IPO-related costs offset revenue gains.
Net profit — excluding one-off listing expenses — fell to RM57 million from RM63.4 million a year earlier, the group said in a filing.
This came as selling, distribution and administrative expenses surged 65.1% to RM155.4 million, driven by network growth, the full-quarter impact of the Feb 1 minimum wage revision, and listing-related fees of RM7.6 million.
Quarterly revenue, however, rose 7.5% year-on-year to RM689 million, supported by the net addition of 22 new stores and a pricing revision introduced in mid-April, which raised product prices to RM2.60 in Peninsular Malaysia and RM2.80 in East Malaysia.
The pricing adjustment helped lift Eco-Shop's gross profit margin to 31.9%, up from 27.2% in 4QFY2024, aided further by a favourable product mix and currency gains in procurement.
The company declared a 1 sen interim single-tier dividend, amounting to RM57.5 million, payable on Aug 26.
For the full financial year ended May 31, 2025 (FY25), Eco-Shop reported a 17% increase in adjusted net profit to RM213.7 million, while revenue rose 16% to RM2.8 billion.
The group opened 74 new outlets during the year, bringing its total store count to 371.
The company noted a marginal 0.4% decline in same-store sales growth (SSSG) for FY2025, attributed to initial consumer pushback following the April price increase.
Nonetheless, its CEO Jessica Ng said the group remains upbeat about its long-term prospects.
'Our confidence is underpinned by the continued expansion of our store network and rising consumer demand for value-driven retail.
'Despite the setback in SSSG, we anticipate margins and performance to remain healthy or continue improving,' she said. — TMR
