KUALA LUMPUR (Nov 20): Mr DIY Group (M) Bhd has posted a 22.5% increase in its net profit for the third financial quarter ended Sept 30, 2023 (3QFY2023) to RM123.95 million, from RM101.18 million in the corresponding quarter of 3QFY2022, on the back of a higher revenue and gross profit margin.

Quarterly revenue rose 10.4% to RM1.07 billion from RM966.17 million in 3QFY2022, driven primarily by contributions from new stores. During the period, the group's store network grew by 170 from 1,038 to 1,208 stores, according to the home improvement retailer's filing on Bursa Malaysia on Monday.

Gross profit margin rose to 45%, up 3.9 percentage points year-on-year from 41.1% in 3QFY2022. "The improvement in gross profit margin is primarily attributed to the normalisation of freight costs, as well as the positive impact of price adjustments made in FY2022," the group said.

Together with the release of the quarterly results, Mr DIY declared an interim single tier dividend of 0.8 sen per share or RM75.5 million in total, for its FY2023 ending Dec 31, 2023, to be paid on Dec 22. This raised its year-to-date (YTD) payout to 2.2 sen per share, from 2022's YTD of 1.8 sen.

For the first nine months of FY2023 (9MFY2023), Mr DIY recorded a cumulative net profit of RM402.04 million, 19.3% more than the RM336.87 million it made in 9MFY2022, as revenue grew 10% to RM3.21 billion from RM2.92 billion, as contribution from new stores grow with the opening of more outlets.

On prospects, Mr DIY said it remains focused on the strategic expansion of its store network, and optimising revenue per square foot and operational efficiency, which it said are key to drive financial performance and enhance shareholder value.

"The group’s long-term target is to have 2,000 stores across its core retail brands, namely MR DIY, MR TOY and MR DOLLAR. In the near term for [the] coming financial year, the group targets to open 180 new stores across these core retail brands.

"As an integral but secondary dimension to the group’s growth strategy, we will make measured investments into new retail concepts, which are adjacent to our current retail verticals, in order to build greater specialisation, economies of scale and a more robust platform for long-term growth," the retailer said.

Mr DIY shares closed two sen or 1.26% higher at RM1.61, valuing the group at RM15.2 billion.

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