Hardware retail operator, MR D.I.Y. Group reported its third quarter results with revenue rising 10.4% y-o-y to RM1.1 billion, primarily driven by contributions from new stores it reported. Total transactions rose in tandem by 16.3% y-o-y to 41.6 million in 3QFY2023.
Gross profit margin for 3QFY2023 rose 3.9 percentage points y-o-y to 45.0%. The group said the significant improvement was mainly due to the normalisation of freight costs as well as the impact of the price adjustment exercise carried out in FY2022. Consequently, GP increased 20.9% y-o-y to RM479.5 million.
Profit before tax for the period rose 24.1% y-o-y to RM167.0 million. Consequently, net earnings rose 22.5% y-o-y to RM123.9 million, while net earnings margin increased 1.1 p.p. to 11.6% compared to 10.5%.
For the nine-month financial period ended 30 September 2023, MR D.I.Y. registered cumulative revenue and net earnings (“PAT”) of RM3.2 billion and RM402 million respectively, up 10.0% and 19.3% respectively compared to the corresponding period in FY2022.
The Group also revealed its 5-year growth plan and store opening target of 2,000 stores by FY2028 across its core brands, with an emphasis on the flagship MR DIY brand. This 2,000-store target translates to approximately 19,000 of the population served per store.
The Group declared a quarterly interim dividend of RM75.5 million for 3QFY2023, up 60.2% compared to 3QFY2022. This represents a total cumulative dividend payout of RM207.6 million for 9MFY2023. The Group also announced a new quarterly dividend payout target of 50-65% going forward which reflects the strong cashflow generation by the Group.
