PETALING JAYA: Mr D.I.Y. Group (M) Bhd’s net profit rose 27.1% year-on-year (y-o-y) to RM127.77 million from RM100.50 million for the first quarter ended Mar 31, 2023 mainly due to higher revenue and gross profit.
It recorded a revenue of RM1.05 billion from RM905.16 million, a 15.6% increase y-o-y compared to the corresponding prior period. The revenue growth was primarily driven by an increase in the number of stores, which grew 18.8% y-o-y, taking the total number of stores to 1,125.
“This led to a corresponding increase in total transactions, which grew 18.1% y-o-y to 38.2 million in Q1’23,” the group said in a filing with Bursa Malaysia.
MR DIY declared a dividend of RM56.6 million for Q1’23, which is equivalent to a dividend payout of 44.3% of net earnings.
Commenting on the results, CEO Adrian Ong said, “We have been able to deliver this growth with revenue rising 15.6% to reach RM1.0 billion despite a challenging operating environment as inflationary pressures continue to impose a constraint on household budgets.
“Despite operating cost pressures, we continue to record improvements in our operating margins driven by earlier price increases put through during the Q3’22 as well as lower freight costs which have normalised mainly due to the improvement in the global supply/demand situation for containers and vessels. Should these conditions prevail, we expect to see the full benefit of it in FY23,” he said in a statement.
Ong added the group is cautiously optimistic about its prospects going forward, as there are still concerns on the impact on household income given the increases in cost of living.
“However, this also puts us in a good position to benefit from the strong demand for our affordable, everyday items in the context of continued inflationary pressures on consumers. The more favourable freight environment also favours a better performance going forward.”
“We will maintain our commitment towards investing in sustainable growth through a measured store expansion strategy, innovations in store formats that suit the market needs whilst continuing to provide our customers with value, convenience and a wide range of products under our “Always Low Prices” formula,” he said.
Ong also announced the group’s target to open 180 new stores across all brands in 2023, which will bring the total nationwide store network to over 1,200 in order to cement the group’s position as the largest home improvement retailer in the country.
