Eco-Shop Posts RM71.29 Million Net Profit as Expansion Drives Growth
PETALING JAYA, April 29 — Eco-Shop Marketing Berhad recorded a strong financial performance for the quarter ended February 28, 2026, reporting a net profit of RM71.29 million, up from RM61.72 million in the corresponding period last year.
The improved earnings were supported by steady revenue growth, which rose to RM743.73 million compared with RM736.35 million previously, according to the company’s filing with Bursa Malaysia.
Stronger Margins Support Profit Growth
Eco-Shop attributed the performance to enhanced profit margins, with profit after tax and minority interest (PATAMI) increasing by 15.5 per cent year-on-year to RM71.3 million for the third quarter of the financial year 2026.
In line with the results, the company declared a single-tier interim dividend of 0.55 sen per ordinary share, payable on May 26, 2026. The payout represents a dividend distribution ratio of 44 per cent for the quarter.
The retailer also reported an improvement in pre-tax profit, which climbed to RM98.11 million from RM84.78 million a year earlier, reflecting stronger operational efficiency and sustained demand within the value retail segment.
Nine-Month Performance Shows Accelerated Momentum
For the nine-month period ended February 28, 2026, Eco-Shop registered total revenue of RM2.1 billion, largely driven by the expansion of its store network, which supported higher transaction volumes.
Correspondingly, PATAMI for the period rose by 23.9 per cent to RM191.9 million, indicating continued earnings growth amid a competitive retail landscape.
The company’s performance highlights the resilience of the fixed-price retail model, particularly as consumers increasingly prioritise affordability and product variety.
Aggressive Store Expansion Strategy
Chief executive officer Jessica Ng said the group delivered another quarter of encouraging growth, underpinned by its ongoing store expansion efforts.
“Within the first nine months of 2026, we have opened 65 new outlets and are on track to exceed our initial target of 70 stores, supported by strong momentum heading into the final quarter,” she said.
Ng noted that the accelerating expansion reflects the scalability of Eco-Shop’s operating model, as well as its ability to identify underserved locations and capture new market opportunities.
Enhancing Customer Experience and Engagement
Alongside expansion, the company has been upgrading its stores and refreshing product offerings to improve the overall customer experience.
Eco-Shop is also strengthening its customer engagement strategies by enhancing its customer relationship management (CRM) capabilities, with the aim of driving loyalty and boosting its rewards programme.
“The upgraded CRM platform will enable us to adopt more targeted approaches and increase customer lifetime value, particularly in line with strong spending trends among our members,” Ng said.
These initiatives, combined with disciplined cost management and consistent execution, are expected to support the company’s earnings profile moving forward.
Long-Term Growth Potential Remains Strong
Looking ahead, Eco-Shop remains optimistic about the long-term prospects of Malaysia’s fixed-price retail segment, which it believes is still relatively underpenetrated despite the country’s population of nearly 35 million.
The rising popularity of fixed-price stores — driven by consumers’ focus on value for money and a wide product range — continues to reinforce the relevance of Eco-Shop’s business model.
“This trend provides a solid foundation for us to continue expanding and strengthening our market position,” Ng added.
-wilayah.com.my
