PETALING JAYA: MR D.I.Y Group Bhd’s (MR DIY) net profit increased 1.13% to RM136.08 million in its fourth quarter ended Dec 31, 2022 (Q4’22) compared with RM134.55 million in the corresponding quarter of the previous year, due to higher revenue and gross profit.
Revenue rose 9.27% to RM1.07 billion from RM975.39 million for the same quarter last year, primarily driven by positive sales contributions from new stores, which grew 20% y-o-y from 900 stores to 1,080 stores and led to a 15.2% y-o-y increase in total transactions to 38.1 million.
For the full year, the group’s net profit rose 9.52% to RM472.95 million compared with RM431.83 million. Revenue rose by 18.15% to RM3.99 billion from RM3.37 billion for the same period.
The group said that its full-year performance was impacted by inflationary cost pressures on the overall gross profit margin and higher operating costs due to an increase in the minimum wage which was implemented in May 2022. Reported net earnings was RM472.9 million, impacted by the one-off prosperity corporate tax.
MR DIY CEO Adrian Ong said that the group’s performance was underpinned by a resilient business model backed by a value for money offering that benefits all its consumers.
“We have delivered continuous growth with revenue reaching the RM4 billion mark on the strength of consistent quarterly and annual performances. These positive results are attributed to our loyal customers across the country and our more than 15,500 colleagues, who ensured we stay on course with our expansion strategy while continuing to explore innovative retail experiences for our customers.
“The group is optimistic about its prospects going forward, given the positive post-pandemic sentiment. The more favourable freight environment and the strengthening of the ringgit against both the US dollar and Chinese renminbi also favour a better performance. There are still concerns on the impact on household income given rising interest rate and increases in cost of living,” he said in a statement today.
He added that the group remains committed to long-term sustainable growth through a measured store expansion strategy, innovations in product offering and continuous focus on providing value for money to consumers under its “Always Low Prices” formula.
The group aims to open 180 new stores across all brands in 2023, which will bring the total nationwide store network to over 1,200 and further cement the group’s position as the largest home improvement retailer in the country, whilst continuing to provide its customers with value, convenience and a wide range of products at unbeatable prices.
The group’s store network expanded from 900 stores in FY21 to 1,080 stores as of December 31, 2022 across its three brands – MR DIY, MR TOY and MR DOLLAR.