MR D.I.Y posts net profit of RM100.5mil in 1Q

MR D.I.Y. Group (M) Bhd chief executive officer Adrian Ong

KUALA LUMPUR: MR D.I.Y. Group (M) Bhd, which posted a net profit of RM100.5mil in the first quarter ended March 31, has an interim single-tier dividend of RM0.007 per share.

The dividend, which amounted to RM44mil, represented a payout ratio of 43.8 per cent. The ex-date for the dividend is on June 2 and payment on June 24.

The home improvement retailer’s revenue stood at RM905.16mil in the first quarter, up 4% from RM870.18mil a year ago, mainly driven by contribution from new stores as its store network grew 20%year-on-year (y-o-y) to 947 stores.

In a statement, MR DIY said its total transactions rose 8% from 29.9 million to 32.3 million during the period.

During the quarter, its 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.

As at March 31, the total number of stores stood 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.

Its cash flow and balance sheet remained healthy in 1Q22, with net cash flow from operations standing at RM79.6mil whilst the group’s net gearing ratio remained a comfortable 0.01 times; having reduced significantly compared to 1Q21 following further repayment of borrowings during the quarter.

MR D.I.Y. chief executive officer Adrian Ong said the group made significant progress over the last two years, despite facing various challenges including a pandemic, supply chain disruptions, escalating input and freight costs as well as a weakening currency.

“We remain committed to supporting our fellow Malaysians during this challenging period by ensuring that they have access to a broad assortment of everyday household essential items and at ‘Always Low Prices'.

“We have been able to maintain this commitment largely through our unrelenting focus on managing operational efficiencies, our flexible business model, and our close direct relationships with manufacturers and logistics providers.

“Our strong cash position and excellent payment terms mean we can also negotiate favourable prices with our suppliers; all these have enabled us to manage both our top and bottom lines effectively,” Ong said.

He said its 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.

Separately, 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.