MR D.I.Y Group Berhad reported revenue of RM1.1 billion, a 9.3% increase year-on-year (“y-o-y”) compared to the corresponding prior period. The growth was driven primarily by a 15.2% increase in transaction volume attributed to the store’s network expansion from 900 stores in FYE2021 to 1,080 stores
The Group’s profit before tax for the period rose 5.5% y-o-y to RM188.9 million led by the higher revenue. Normalised net earnings for the 4QFY2022 increased 8.7% y-o-y to RM146.3 million. Reported net earnings was RM136.1 million, or RM10.2 million lower, as a result of the one-off prosperity corporate tax levied on companies with chargeable income above RM100 million at a tax rate of 33% instead of the current normal corporate tax rate of 24%. Net normalised earnings margin for the 4QFY2022 was 13.7% compared to 13.8% in the corresponding quarter of FY2021. The results benefitted from a rebound in gross profit margin offset by higher operating expenses, particularly from significantly higher employee costs in line with a 25% increase in the minimum wage rate, which came into effect on 1st May 2022.
The Group reported cumulative revenue of RM4 billion for the financial year ending December 31, 2022. The figure marked an 18.2% increase y-o-y compared to the financial year ended in 2021. Normalised net earnings improved 11.9% y-o-y to RM483.1 million, driven by solid revenue growth. However, the full-year performance was impacted by inflationary cost pressures on the overall gross profit margin and higher operating costs due to an increase in the minimum wage which was implemented in May 2022. Reported net earnings was RM472.9 million, impacted by the one-off prosperity corporate tax.
Since its IPO in 2020, MR D.I.Y.’s store network has grown by 82.1% from 593 at the beginning of 2020 to 1,080 as at the end of FY2022. Revenue has grown by 55.7% from RM2.6 billion in FY2020 to RM4.0 billion in FY2022 while normalised net earnings have grown by 43.3% from RM337.1 million in FY2020 to RM483.1 million in FY2022.
The group declared a dividend of RM56.6 million for 4QFY2022, taking the full year’s dividend payout to RM204.2 million.
