MR DIY Q1 Revenue Grew 4% From Store Openings To RM905.2 Million But Profits Falter Dipping 21%

MR DIY revenue for 1QFY22 rose 4% yo-y to RM905.2 million, mainly driven by contribution from new stores as the homegrown retailer’s store network grew 20% y-o-y to 947 stores. Total transactions rose 8% from 29.9 million to 32.3 million.

Profit before tax in 1QFY22 stood 21% lower y-o-y at RM134.5 million, mainly due to cost factors outpacing revenue growth, impacting overall profit margins. Consequently, profit after tax for the quarter was 20% lower y-o-y to RM100.5 million, consistent with the above-mentioned factors.

During the quarter, the Group’s store network grew by a net 47 stores across its three brands, comprising 44 new MR D.I.Y./D.I.Y. Express stores, two new MR DOLLAR stores and one new MR TOY store. The total number of stores now stands at 947, comprising 841 MR D.I.Y/D.I.Y. Express stores, 51 MR TOY stores and 55 MR DOLLAR stores. The Group aims to open a further 133 stores across all brands in 2022.

Commenting on the results, MR D.I.Y. Chief Executive Officer Adrian Ong said, “As a Group, we have made significant progress over the last 2 years, despite facing various challenges including a pandemic, supply chain disruptions, escalating input and freight costs as well as a weakening ringgit.”

He said the emergence of the fourth wave of the COVID-19 pandemic in February 2022, with its highly viral Omicron variant, drove up infection rates. Foot traffic to stores and consumer spend were consequently lower as the public erred on the side of caution to reduce the risk of infection.

Ong went on to say that to stay on track for steady, sustainable growth, MR D.I.Y was constantly on the lookout for new and innovative ways to deliver a breadth of products at convenient locations and on accessible platforms.“We are positive about the future. The country’s move into the endemic phase, the gradual lifting of movement restrictions and the high vaccination rate thanks to the Government’s free vaccination programme have primed the country to a return to a new normal, and with it, the resurgence of the retail industry. We are confident that under such conditions, we will be able to deliver long-term sustainable growth and value to our stakeholders,” said Ong.

“Our strategies for growth remain consistent – the carefully-curated expansion of our store network across all brands, driving same-store-sales growth (SSSG), managing our supply chain and improving cost efficiencies and employing stringent data discipline. The home improvement industry is expected to grow at a CAGR of 10.4% over 5 years from 2021-2026 (Source: Frost & Sullivan), which indicates that there is significant scope for our business to further penetrate the home improvement retail market,” he added.

On 13 May 2022, it was announced that MR D.I.Y. will be admitted to the MSCI All Country World Index and MSCI Emerging Market Index as of the close on May 31, 2022. MR D.I.Y. is expected to be one of 34 constituents from Malaysia in the MSCI All Country World Index, yet another corporate milestone for the Group since its listing.

In line with the Group’s policy of paying quarterly dividends, MR D.I.Y. has declared a dividend of RM44.0 million for 1QFY22 representing a payout ratio of 43.8%

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