by RAHIMI YUNUS / pic by TMR FILE

A GREATER number of stores and transactions have pushed Mr DIY Group (M) Bhd’s net profit higher in the third quarter ended Sept 30, 2020 (3Q20).

Its earnings for the period jumped 54.1% or RM39.8 million to RM113.5 million from RM73.6 million in the corresponding period last year, the company stated in a bourse filing yesterday.

Revenue climbed 31.8% or RM178.5 million to RM740.2 million in 3Q20 from RM561.7 million, attributable to strong consumer demand sentiment towards home improvement products post-Movement Control Order and an increase in the number of stores to 688 versus 556 in the prior year’s quarter.

Mr DIY said a higher gross profit margin in the current quarter of 42.4% compared to 40.4% in the preceding year’s corresponding quarter also contributed to higher gross profit.

The group said the lower gross profit margin as seen last year in the same period was mainly attributed to the removal and write-off of certain non-compliance products from its stores.

It said average monthly sales per store rose 7% compared to the corresponding quarter in 2019, while operating expenses as a percentage of revenue have declined from 18.4% to 17.3% in the current quarter, according to a statement.

“Going forward, our strategy is to continue to focus on creating sustainable growth by expanding our store network across our three brands: Mr DIY, Mr TOY and Mr DOLLAR; driving more foot traffic into our stores to increase revenue as well as expanding our e-commerce business. It is a multi-pronged strategy that we are confident will deliver results,” CEO Adrian Ong said in the statement yesterday.

The group added that a record 48 new stores during 3Q20, an increase of 100% from the average store additions in each of the preceding two quarters.

It currently has 688 stores comprising 656 Mr DIY, 28 Mr TOY and four Mr DOLLAR stores, increasing from the 579 Mr DIY and 14 Mr TOY stores it had at the end of 2019.

The group aims to open an aggregate of approximately 307 stores across all brands in 2020 and 2021. Mr DIY declared an interim single-tier dividend of 0.73 sen per ordinary share in respect of the financial year ending Dec 31, 2020, payable on Dec 18, 2020, to shareholders of the company whose names appear in the record of depositors on Dec 1, 2020.

Net cash from operating activities stood at RM360.8 million, while net gearing ratio remained at 0.69 times and, which will improve significantly in future periods when the equity raised during the IPO of RM301 million is taken into account.