KUALA LUMPUR: MR D.I.Y Group (M) Bhd's net profit rose 11.2 per cent to RM150.32 million in the second quarter ended June 30, 2023 (2Q23) from RM135.19 million a year ago, partially offset by higher operating expenses.
This is particularly from higher employee cost incurred following a 25 per cent increase in the minimum wage rate, which came into effect on May 1 last year, according to the group's filing to Bursa Malaysia today.
Revenue for the quarter improved 4.8 per cent to RM1.1 billion against RM1.05 billion previously, underpinned by positive contributions from new stores.
As a result, the group registered higher earnings per share of 1.59 sen from 1.43 sen in 2Q22.
MR DIY's gross profit margin for 2Q23 rose 5.3 per centage point YoY to 46.3 per cent, driven by significant decline in freight costs, which has normalised to pre-pandemic levels, as well as the impact of the price adjustment exercise carried out in financial year 2022 (FY22).
The group declared an interim single-tier dividend of 0.8 sen per share or RM75.5 million in respect of the financial year ending Dec 31, 2023, to be paid on Sept 22.
For the cumulative period of six months, MR DIY posted a higher net profit of RM278.1 million from RM235.69 million a year ago, while revenue increased to RM2.15 billion from RM1.95 billion.
MR DIY opened 43 new stores during the quarter across its four brands namely MR DIY, MR TOY, MR DOLLAR and EMTOP, bringing the total store count to 1,168 in the first half of 2023 (1H23), an increase of 17.6 per cent YoY compared to 1H22.
MR DIY chief executive officer Adrian Ong said in today's inflationary environment, value is the driving force of retail decision-making.
This can be seen not just in the home improvement sector, but in other key retail sectors like groceries, stationery and home appliances.
He added that the group's steady growth in 2Q23 is a strong signal that MR DIY's value for money proposition is relevant and resonates with today's value-conscious shopper.
"This makes it imperative that we continue to penetrate wider and deeper into both market centres and smaller towns to meet the needs of the underserved value shopper – our expansion plans will meet their needs while driving our growth.
"We are also highly encouraged by the significant progress in the recovery of our profit margins despite current operating challenges, which is a convincing indicator of the strength and resiliency of the business," he said in a separate statement.
Ong said MR DIY had made good progress on new store growth, putting the group well on track to exceed its full-year target of opening 180 new stores.
