Discount Non-Food Retail Chain MR D.I.Y. Group (M) Berhad (listed on the Malaysian MYX) reported revenue of RM1.1 billion, a 9.3% increase year-on-year (YoY) compared to the corresponding prior period.
The growth was driven primarily by a 15.2% increase in transaction volume as the Company continued to grow its nationwide footprint further. The Group’s store network expanded from 900 stores in FYE2021 to 1,080 stores as of 31 December 2022 across its three brands, MR D.I.Y., MR Toy and MR Dollar.
The Group’s profit before tax (PBT) for the period rose 5.5% y-o-y to RM188.9 million led by the higher revenue. Normalised net earnings for the 4QFY2022 increased 8.7% y-o-y to RM146.3 million. Reported net earnings was RM136.1 million, or RM10.2 million lower, as a result of the one off prosperity corporate tax levied on companies with chargeable income above RM100 million at a tax rate of 33% instead of the current normal corporate tax rate of 24%. Net normalised earnings margin for the 4QFY2022 was 13.7% compared to 13.8% in the correspondingly quarter of FY2021. The results benefitted from a rebound in gross profit margin offset by higher operating expenses, particularly from significantly higher employee cost in line with a 25% increase in the minimum wage rate, which came into effect on 1st May 2022.
The Group reported cumulative revenue of RM4.0 billion for the financial year ending December 31, 2022 (FY2022). The figure marked an 18.2% increase y-o-y compared to the financial year ended 31 December 2021 (FY2021). Normalised net earnings improved 11.9% y-o-y to RM483.1 million, driven by solid revenue growth.
However, the 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. Since its IPO in 2020, MR D.I.Y.’s store network has grown by 82.1% from 593 at the beginning of 2020 to 1,080 as at the end of FY2022. Revenue has grown by 55.7% from RM2.6 billion in FY2020 to RM4.0 billion in FY2022 while normalised net earnings have grown by 43.3% from RM337.1 million in FY2020 to RM483.1 million in FY2022.
Announcing the results, MR. D.I.Y.’s Chief Executive Officer Adrian Ong said, “MR D.I.Y’s performance is underpinned by a resilient business model backed by a value for money offering that benefits all our consumers. We have been fortunate to have delivered continuous growth with revenue reaching the RM4.0 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 employees, who ensured to stay on course with the expansion strategy while continuing to explore innovative retail experiences for its customers. Ong added, “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 Malaysian Ringgit against both the United States 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.” “We remain 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 our “Always Low Prices” formula.
Mr. DIY, Malaysias, target is to open 180 new stores across all brands in 2023, which will bring the total Malaysia 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 our customers with value, convenience, and a wide range of products at unbeatable prices.” MR D.I.Y declared a dividend of RM56.6 million for 4QFY2022, taking the full year’s dividend payout to RM204.2 million.
About MR DIY
MR D.I.Y. Group (M) Berhad is a home-grown enterprise with 1,080 stores in Malaysia and Brunei. The home improvement retailer has dedicated to make a positive difference in the lives of its valued customers by offering convenience at all its stores nationwide and online at www.mrdiy.com.my
All MR. D.I.Y. stores are managed directly and the retailer often works in collaboration with owners of shopfront properties or owners of malls. MR. D.I.Y. stores offer a wide selection of SKUs across five major categories, namely hardware; household and furnishing; electrical; stationery and sports equipment products; and others (comprising toys, car accessories, jewellery, cosmetics and food and beverage).
The Company strives to put its customers first by operating an innovative business that is flexible when it comes to providing a wide variety of products, good quality and value-for-money, holding true to the Company’s motto of “Always Low Prices”.
Private Equity investor Creador backs MR. DIY Group, owning and operating over 1000 stores in Malaysia. With over 2,251 stores in 10 Asian and European markets, including Malaysia, Thailand, Indonesia, the Philippines, India, Turkey, Spain, Singapore, Brunei, and Cambodia.
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