KUALA LUMPUR: MR DIY Group (M) Bhd’s net profit more than doubled to RM124.79mil in the first quarter ended March 31, 2021 (1Q21), from RM58.46mil in the same period a year ago.
The home improvement store recorded revenue of RM870.2mil in the first quarter, up 62.9%, or RM336.1mil compared to RM534.1mil recorded in the corresponding quarter in the preceding year.
The significant increase in revenue was mainly driven by an increase in average monthly sales per store, as well as a 25.5% increase in the number of stores, from 628 in 1Q20 to 788 in 1Q2021.
Correspondingly, the total transaction for the period increased by 21.7% from 24.6 million to 29.9 million.
The group declared a dividend of 0.8 sen per share, amounting to RM50.21mil, to be paid on June 17.
In a statement, MR DIY chief executive officer Adrian Ong said this was the group’s strongest quarterly performance date.
“Our store network continues to grow, making our stores more and more accessible to consumers restricted by pandemic-related movement orders.
“Our breadth of products has expanded to about 18,000 SKUs today and we are investing in growing our e-commerce platform, and in managing efficiencies. These have been the cornerstones of our growth strategy which continue to deliver sound results,” he said.
Moving forward, Ong said the group would continue to stay the course of creating sustainable growth via the strategic expansion of our store network across our three brands: MR DIY, MR TOY and MR DOLLAR, while increasing sales in existing stores and expanding our e-commerce business.
“In addition, the home improvement industry is expected to grow at a CAGR of 10.7% over 5 years from 2020-2025 (Source: Frost & Sullivan), which indicates that there is significant scope for our business to further penetrate the home improvement retail market,” he said.
During the quarter, the group’s store network grew by a net 54 stores across its three brands, comprising 30 new MR DIY stores, 22 new MR DOLLAR stores and 2 new MR TOY stores.
As at March 31, total number of stores stood at 788, comprising 713 MR DIY stores, 39 MR TOY stores and 36 MR DOLLAR stores.
“The group aims to open a further 121 stores across our three brands in 2021,” it said.
Its net cash flow from operations grew to RM221.4mil for 1Q21, whilst the group’s net gearing ratio stood at 0.04 times; the latter having reduced significantly compared to 4Q20 following further repayment of borrowings during the quarter.