KUALA LUMPUR: MR D.I.Y Group (M) Bhd's net profit rose 22.5 per cent to RM123.95 million in the third quarter ended Sept 30, 2023 (3Q23) from RM101.18 million a year ago, in line with the higher revenue and gross profit.
Revenue for the quarter rose 10.4 per cent to RM1.07 billion from RM966.17 million previously, driven primarily by positive contributions from new stores.
The company's store network grew 16.4 per cent in the same period, from 1,038 to 1,208 stores.
Correspondingly, total transactions increased 16.3 per cent, from 35.8 million in 3Q22 to 41.6 million in 3Q23.
This was partially offset by a lower average basket size, which decreased 5.1 per cent mainly due to weaker consumer sentiment.
As a result, the company registered higher earnings per share of 1.31 sen from 1.07 sen in 3Q22.
MR DIY declared a quarterly interim dividend of RM75.5 million for 3Q23, up 60.2 per cent compared to 3Q22.
This represents a total cumulative dividend payout of RM207.6 million for 9MFY23.
MR DIY also announced a new quarterly dividend payout target of 50 to 65 per cent going forward which reflects the strong cashflow generation by the company.
For the nine-month financial period, MR DIY's net profit grew 19.3 per cent to RM402.04 million from RM336.87 million a year ago, while revenue increased to RM3.21 billion from RM2.92 billion.
Chief executive officer Adrian Ong said overall, the 3Q23 financial performance met expectations, with the company outperforming the retail trade by continuing to record year-on-year revenue and net earnings growth.
This reflects the resilience of the business, particularly during the environment of persistent rising inflationary and interest rates which has affected household disposable income and consumer sentiment, further exacerbated by the absence of any seasonal festivities during the quarter.
"In keeping to our promise, we recently launched a nationwide campaign entitled 'Kecil dan Besar' as a reminder to all Malaysians that whatever their needs, we have the products they need at the right prices," he said in a separate statement.
Ong noted that the company is exploring several key initiatives, including the launch of new brands to capitalise on growth opportunities, as well as potential horizontal and vertical acquisitions to boost operational synergies, ensure future growth visibility and safeguard its supply chain.
"Warehouse automation, a project we started several years ago, is also a priority to enhance cost optimisation," he said.
In the 9MFY23, MR DIY saw a net growth of 123 stores across its core three brands – MR. D.I.Y, MR. TOY and MR. DOLLAR - an increase of approximately 12 per cent from Dec 2022 with the majority being MR DIY stores.
This brings the company's total number of stores to 1,203 as at Sept 30.
The company's store expansion for financial year 2023 (FY23) remains largely on track, with at least 57 stores to be opened across all three brands in the fourth quarter of FY23.
The company also revealed its five-year growth plan and store opening target of 2,000 stores by FY28 across its core brands, with an emphasis on the flagship MR DIY brand.
