Mr DIY posts 54% jump in quarterly profit, declares 0.73 sen dividend

Mr DIY posts 54% jump in quarterly profit, declares 0.73 sen dividend
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KUALA LUMPUR (Nov 5): Newly-listed Mr DIY Group (M) Bhd's net profit for the third quarter ended Sept 30, 2020 (3QFY20) jumped 54.11% to RM113.45 million from RM73.62 million in the same quarter last year, as it recorded higher average monthly sales per store.

On the back of the strong earnings growth, it declared an interim dividend of 0.73 sen per share, which amounts to RM45.8 million, payable on Dec 18.

Its stock exchange filing today showed revenue climbed 31.78% to RM740.23 million in 3QFY20, from RM561.72 million in the previous year, while earnings per share (EPS) rose to 1.86 sen from 1.21 sen.

The nation’s largest home improvement retailer attributed the higher sales on the back of increased transactions, following strong consumer demand sentiment towards home improvement products after the Movement Control Order (MCO), as well as an increase in the number of stores to 688 from 556.

For the nine months ended Sept 30, the group's net profit was up a marginal 0.98% to RM228.9 million from RM226.68 million, while revenue grew 7.99% to RM1.79 billion from RM1.66 billion. EPS increased to 3.76 sen from 3.72 sen previously.

On prospects, the group said it remains cautiously optimistic, premised on the strength and resilience of its business, despite the challenging market outlook and uncertainties caused by the pandemic.

The group also said its growth drivers remain on track, as it aims for an aggregate 307 new store openings in 2020 and 2021 across its three brands, namely MR DIY, MR TOY and MR DOLLAR.

"We are delighted to report strong 3QFY20 results despite the challenges of the current operating environment. The COVID-19 pandemic has impacted lives in many ways, and perhaps most of all in consumer behaviour. Malaysians are more conscious now about how, where, and what they buy. 

“As a homegrown enterprise focused on meeting the needs of our customers, we realise the importance of providing convenience, choice, accessibility and quality products at “Always Low Prices” to value-seeking Malaysians; more so during this trying period when livelihoods are impacted,” said Mr DIY's chief executive officer Adrian Ong in a separate statement.

“Going forward, our strategy is to continue to focus on creating sustainable growth by expanding our store network across our three brands: MR D.I.Y., MR TOY and MR DOLLAR; driving more foot traffic into our stores to increase revenue, as well as expanding our e-commerce business. It’s a multi-pronged strategy that we are confident will deliver results,” he added.

The group, meanwhile, noted that its cash flow and balance sheet remained healthy, with a net cash flow from operations of RM360.8 million, while its gearing ratio was at "a comfortable 0.69 times", adding that will improve when the equity of about RM301 million raised during its initial public offering (IPO) is taken into account.

Shares of Mr DIY closed 10 sen or 5.26% higher at RM1.88 today, valuing it at RM11.8 billion. In less than two weeks since its Bursa Malaysia debut on Oct 26, the stock has climbed 17.5% from its IPO price of RM1.60.

Tan Choe Choe