MR D.I.Y. Group (M) Bhd, Malaysia’s largest home improvement retailer, today reported revenue of RM975 million for the fourth quarter ended 31 December 2021 (“4QFY2021”), a 27% year-on-year (“y-o-y”) increase compared to the corresponding period in 2020 (“4QFY2020”).
In a statement, it said that the higher 4QFY2021 results come on the back of higher average monthly sales per store, higher average basket size, as well as positive contribution from new stores.
It said that the Group’s store network grew by 23% y-o-y, from 734 in 4QFY2020 to 900 in 4QFY2021; representing a net growth of 166 stores across its four brands – MR. D.I.Y, MR D.I.Y. Express, MR TOY, and MR DOLLAR – with the majority being flagship MR D.I.Y stores.
It said that the higher average monthly sales per store are attributed to the strong nationwide store performance as total transactions for the quarter rose 20% y-o-y from 27.6 million to 33.1 million. Consequently, the Group registered a higher profit before tax of RM179.1 million for 4QFY2021, an increase of 26% versus 4QFY2020. PAT for the quarter grew 24% y-o-y, consistent with the above-mentioned factors.
For the year ended 31 December 2021 (“FY2021”), MR D.I.Y. registered cumulative revenue and PAT of RM3.4 billion and RM431.8 million, up 32% and 28% y-o-y respectively compared to the corresponding period in 2020 (“FY2020”). Overall growth for the period was also attributed to positive contributions from new stores which led to higher total transactions as well as higher basket sizes.
Commenting on the results, MR D.I.Y.’s Chief Executive Officer Adrian Ong said, “We are pleased to deliver a strong set of financial results which reflect the strength and resilience of our business. We are also extremely proud of the more than 12,500-strong MR D.I.Y. team who, despite the uncertainties related to COVID-19 pandemic and resulting supply chain issues, continued to deliver on our promise of offering everyday essentials for all Malaysians, at “Always Low Prices”, in almost 900 convenient locations across the country. The combination of our customers’ loyalty to our brand and our employees’ commitment to delivering outstanding service contributed significantly to these results.”
He added that the Group’s cash flow and balance sheet remained solid, with net cash flow from operations standing at RM647.7 million whilst the Group’s net gearing ratio remained a comfortable 0.01 times; the latter having improved significantly compared to the corresponding period in 2020.
“The Group remains committed to delivering long-term sustainable growth driven by the inherent strength of the business, an effective strategy of managing new store growth, improving operating efficiencies and most importantly, staying relevant to our customers. The Group’s target for 2022 is to open 180 stores across the four brands, bringing the total number of stores to approximately 1,100.
“We also recognise that other areas have become salient because of the pandemic, in particular critical challenges in the areas of environment, social and governance (ESG). MR D.I.Y.’s recent inclusion in the global FTSE4Good Index is an acknowledgement of our well-embedded efforts to sustainably manage our business, and to ensure a positive impact on the communities in which we operate. Moving forward, we will place greater emphasis on meeting these priorities,” said Ong.