KUALA LUMPUR: Malaysia’s largest home improvement retailer MR DIY Group Bhd posted a net profit of RM158.63 million for the fourth quarter (Q4) ended December 31, 2023 (FY23), an increase of 16.6 per cent from RM136.07 million posted in the same quarter last year.
The net earnings increase was partially lifted by the absence of a one-off prosperity corporate tax of RM10.2 million in Q4 FY22.
Revenue for Q4 FY23 rose 7.6 per cent to RM1.14 billion from RM1.06 billion posted in the same quarter last year, driven by a 16.8 per cent growth in new stores.
Transaction volume increased 16.7 per cent as the company continued strategically expanding its store network across its core brands from 1,080 stores in FY22 to 1,255 as of December 31, 2023.
Gross profit (GP) margin for Q4 FY23 rose 2.1 percentage points (pp) year-on-year (YoY) to 45.8 per cent.
The improvement was mainly due to the normalisation of freight costs and the impact of the price adjustment exercises carried out in FY22. Consequently, GP increased 12.7 per cent YoY to RM525.4 million.
For FY23, MR DIY posted a cumulative revenue and net profit of RM4.4 billion and RM560.7 million, up 9.4 per cent and 18.5 per cent, respectively.
Chief executive officer Adrian Ong said the company continues to deliver growth across all key indicators.
He said since the company’s initial public offering (IPO) in 2020, MR DIY’s store network has grown by 111.6 per cent from 593 to 1,255 as of the end of FY23.
Revenue has grown by 70.3 per cent from RM2.6 billion in FY20 to RM4.4 billion in FY23.
More importantly, net earnings have grown by 66.3 per cent from RM337.2 million in FY20 to RM560.7 million in FY23.
“This reflects the strength and resilience of our business model, underpinned by the value-for-money offering that resonates with Malaysians from all walks of life.
“This commendable set of financial results is also attributable to the determination of our close to 18,000-strong workforce, who have been committed to ensuring we deliver an excellent retail experience whilst staying on course with our expansion strategy,” Ong said in a statement.
Ong said MR DIY is confident of its prospects going forward, driven by the demand for everyday essentials at consistent value, especially in this period of persistent inflation and the rising cost of living.
“Our growing store network makes us increasingly accessible to more Malaysians and underpins our role as their go-to retailer for everyday household items.
“Our plan in the near and mid-term is to open 180 new stores in 2024 and surpass 2,000 stores by 2028.
“This will further cement the company’s position as the largest home improvement retailer in the country,” he said.
MR DIY declared a dividend of RM94.4 million for Q4 FY23, taking the full year’s dividend payout to RM302.1 million, a 47.9 per cent improvement from the previous year.
The full-year dividend equals a payout ratio of 54 per cent of its net profit.
