Johor bahru: Eco-Shop Marketing Bhd has announced a net profit of RM204.32 million for its financial year ended May 31, 2025 (FY2025), an increase from RM177.28 million the previous year. The Johor-based dollar-store chain achieved this improved net profit despite facing higher operating costs due to its expanded store network and the implementation of minimum wage policies.
According to BERNAMA News Agency, the company’s revenue for the year also increased to RM2.79 billion from RM2.40 billion, driven by the addition of 74 new stores during the financial year. However, the group noted a marginal decline of 0.4 per cent in same-store sales growth (SSSG), which was attributed to a normalization in consumer spending at mature outlets and challenges in product availability.
The number of sales transactions rose by 21.6 per cent to 114.8 million in FY2025. In the fourth quarter, the retailer reported a net profit of RM49.41 million compared to RM63.27 million year-on-year. Despite this, revenue for the quarter increased to RM688.98 million from RM640.67 million a year earlier, primarily due to the continued expansion of the group’s store network, with 22 new stores added in the quarter compared to 19 in the fourth quarter of 2024.
The total number of stores rose to 371 by the fourth quarter of 2025 from 297 in the same quarter of 2024. The company also declared an interim single-tier dividend of 1.0 sen per ordinary share, amounting to approximately RM57.5 million for FY2025, payable on August 26, 2025, with the entitlement date on August 12, 2025.
The filing indicated a 12.4 per cent rise in sales transactions to 28.9 million in the fourth quarter of FY2025. Eco-Shop noted that a price increase implemented on April 14, 2025, raised the selling price of its products to RM2.60 in Peninsular Malaysia and RM2.80 in East Malaysia, contributing to the revenue uplift.
The company emphasized its strategic positioning as consumer preferences shift towards affordability and convenience, which positions Eco-Shop for further scaling and increased nationwide relevance. It addressed inflationary and structural cost pressures, including higher electricity tariffs, an expanded Sales and Services Tax, and a 2.0 per cent EPF contribution for foreign workers, by enhancing supply chain efficiencies and strategic pricing.
Despite the setback in SSSG, the group expects its margins and overall performance to remain healthy or improve. Store network expansion remains a long-term strategy for greater market penetration, with a continued focus on delivering strong, sustainable financial performance over the long term.