MR DIY Q1 net profit slips 19.5pc
KUALA LUMPUR: MR DIY Group (M) Bhd’s net profit fell 19.5 per cent to RM100.5 million in the first quarter ended March 31 this year from RM124.79 million a year ago due to cost factors outpacing revenue growth.
However, the home improvement retailer said its revenue rose 4.0 per cent to RM905.16 million from RM870.18 million in the previous corresponding period.
The increase in revenue was driven mainly by contributions from new stores.
“The number of stores grew 20.2 per cent year-on-year to 947 stores in the first quarter of this year .
“Total transactions for the quarter were higher, rising 8.1 per cent year-on-year to 32.3 million,” it said.
During the quarter, MR DIY said its store network grew by 47 stores across its three brands, comprising 44 new MR DIY/DIY express stores, two new MR DOLLAR stores and a new MR TOY store.
As at March 31 last year, the total number of stores stood at 947, comprising 841 MR DIY/DIY express stores, 51 MR TOY stores and 55 MR DOLLAR stores.
“The company aims to open 133 more stores across all brands this year,” it said.
Chief executive officer Adrian Ong said the emergence of the fourth wave of the Covid-19 pandemic in February had affected foot traffic to its stores as well as its sales performance.
“The high number of Covid-19 cases resulted in several MR DIY stores being closed intermittently for sanitisation,” he said.
Ong said MR DIY remained committed to supporting Malaysians during this challenging period by ensuring that they get access to a broad assortment of essential items at low prices.
He said the company had been able to maintain this commitment largely through its unrelenting focus on managing operational efficiencies, flexible business model and close direct relationships with manufacturers and logistics providers.
“Our strong cash position and excellent payment terms mean we can negotiate favourable prices with our suppliers.
“These have enabled us to manage our top and bottom lines effectively.”
On May 13, it was announced that MR DIY would be admitted to the MSCI All Country World Index and MSCI Emerging Market Index as of the close on May 31.
It is expected to be one of 34 constituents from Malaysia in the MSCI All Country World Index, yet another corporate milestone for the company since its listing.
MR DIY has declared a dividend of RM44 million for the first quarter of this year, representing a payout ratio of 43.8 per cent.