MR DIY delivers RM90.35mil profit in Q3

KUALA LUMPUR: MR DIY Group (M) Bhd said contributions from new stores boosted its revenue in the three-month ended Sept 30, 2021 but the Covid-19 lockdown during the quarter impacted its earnings.

Net profit fell 20% to RM90.35mil, or 1.44 sen a share, although revenue improved 4% to RM768mil.

The company has declared a third interim payout of 0.65 sen a share.

“During the quarter, approximately 8% of our stores were closed primarily due to pandemic-related restrictions, with conditions improving substantially towards the end of Sept 2021, as the retail operating environment normalised,” the company said in a statement yesterday.

Despite the challenging landscape, year-to-date, the group saw a net growth of 107 stores across its three brands – MR DIY, MR TOY and MR DOLLAR. This brings the group’s total number of stores to 841 as at end of September 2021.

The group is set to open a further 68 stores across all three brands in the fourth quarter of the year.

“While in the short term we were impacted by the closure of stores due to Covid-19 restrictions, the longer term performance continued to show steady growth, driven by new stores,” MR DIY’s chief executive officer Adrian Ong said.

“Also encouraging to note was that the number of transactions and the average basket size had both increased following the normalisation of store operations.” he added.

The group’s cash flow and balance sheet remain strong, providing it with the financial flexibility to continue investing for the long term.

Net cash flow from operations stood at RM434.7mil while the group’s net gearing ratio remains at a comfortable 0.11 times; the latter having improved significantly compared to the corresponding period in 2020.

Ong said the group remained confident of its ability to deliver long-term sustainable growth.

“This is premised on the underlying strength of the business, the strong unit economics of flagship MR DIY stores, and the progress we are making on new store growth. We will continue to focus on improving cost efficiencies, managing our supply chain efficiently, and employing stringent data discipline to ensure the continued relevance of our products,” he said.

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