MR D.I.Y’s net profit surges 65% to RM135m in 2Q

by S BIRRUNTHA / pic TMR 

MR D.I.Y Group (M) Bhd’s net profit grew 64.6% To RM135.19 million in the second quarter ended June 30, 2022 (2Q22) from RM82.13 million a year ago.

In a filing to Bursa Malaysia yesterday, the home improvement retailer said quarterly revenue rose 38% to RM1.05 billion from RM759.82 million last year.

The group attributed the higher net profit and revenue to the increase in total transactions which grew 35.0% YoY to 36.1 million, as well as contributions from new stores, which increased 20.1% YoY from 827 to 993.

“The higher revenue is also consistent with the nation entering the transition into the endemic phase from April 1 which led to the opening of more economic sectors, the gradual normalisation of consumer spending and the higher spending levels due to the festive season.

“The YoY increase also takes into account the temporary closure of some stores during the corresponding quarter last year,” it added.

MR D.I.Y registered an earnings per share (EPS) of 1.43 sen for the period against 0.87 sen previously.

The group also declared an interim single-tier dividend of 0.6 sen per ordinary share or approximately RM56.6 million in respect of the financial year ending Dec 31, 2022 to be paid on Sept 21, 2022.

For the six-month period, MR D.I.Y registered cumulative net profit and revenue of RM235.69 million and RM1.95 billion respectively, which is up 13.9% and 19.6% compared to 2Q21.

On prospects, MR D.I.Y said the group remains cautiously optimistic on its prospects going forward and are cognizant of the impact inflation and rising interest rates have on disposable incomes.

It added that moving forward, the market is going to be more sensitive to external impact; agility and responsiveness will be key tenets of management’s philosophy. 

“The group will continue to focus on its objective of delivering sustainable growth and long-term stakeholder value via its store expansion strategy, whilst maintaining operational efficiencies and keeping costs at optimal levels. 

“The target is to open a further 87 stores across all brands for a total of 180 new stores in 2022,” it said.

The group further noted that the growth will be driven by consistently delivering on the promise of “Always Low Prices”, providing customers with a breadth of choices via the group’s 18,000 product stock keeping units (SKUs), coupled with the convenience and accessibility of its more than 900 stores nationwide.

In a separate press statement, MR D.I.Y CEO Adrian Ong expressed that the post-pandemic era has been defined by many changes in the retail business and customer behaviour, of which both are ever dynamic.

He said with a network of close to 1,000 stores, it has become increasingly important for the group to be able to read the signs quickly and to turn the insights gained from the stringent use of data into quick and decisive actions.

Ong noted that this allows the group to make the most of the opportunities and pull back when the market slows, as it sometimes will. 

He also added that as a management team, the group has been focused on managing these periodic flows, and our efforts have borne fruit.

“I am extremely pleased with our team’s strong performance and our results through this period.

“Our strong performance across all indicators reflects the resilience of our business model and positive consumer response to our value proposition in a rising cost and inflationary environment. 

“To stay relevant to customers, we are focused on innovation, creating new concepts that meet customers’ evolving needs,” he said.

Ong also highlighted that MR D.I.Y relies on its operating advantages – a flexible business model, strong cash flow, close direct relationships, and excellent payment terms with manufacturers to mitigate ongoing supply chain and cost pressures, all of which provide customers with the best possible value on the market. 

He said it is clear that moving forward, the market is going to be more sensitive to external impact and the group will need to accept this dynamic. 

“Agility, responsiveness and a data-driven approach will be key tenets of our management philosophy moving forward,” he said.

Shares of MR D.I.Y ended unchanged at RM2.32 on Friday, giving it a market capitalisation of RM21.87 billion.