Mr DIY posts record quarterly net profit amid surge in sales

Mr DIY posts record quarterly net profit amid surge in sales
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KUALA LUMPUR (April 30): Mr DIY Group (M) Bhd said its net profit more than doubled to RM124.79 million for the first quarter ended March 31, 2021 (1QFY21), from RM58.46 million a year earlier, following substantially higher sales.

Revenue jumped 62.93% to RM870.18 million from RM534.09 million for 1QFY20, amid a 25.5% increase in the number of stores to 788 from 628 and higher average monthly sales per store.

Total transactions rose 21.7% year-on-year to 29.9 million from 24.6 million, the group added in its bourse filing.

On a quarter-on-quarter basis, net profit rose 15.26% to RM124.79 million from RM108.27 million in 4QFY20, while revenue increased 13.3% to RM870.18 million from RM768.33 million.

The group declared a dividend of 0.8 sen per share, payable on June 17.

Mr DIY chief executive officer Adrian Ong said in a statement that this was the group’s strongest quarterly performance to 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 (stock-keeping units) 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, the group will 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 (compound annual growth rate) of 10.7% over five years from 2020-2025, which indicates that there is significant scope for our business to further penetrate the home improvement retail market,” Ong said.

Mr DIY was listed on the Main Market of Bursa Malaysia in October 2020, and its shares have appreciated by 150.56% in value since then.

Today, the counter closed six sen or 1.48% lower at RM3.99, valuing the group at RM25.04 billion.

S Kanagaraju