KUALA LUMPUR (Aug 13): Mr DIY Group (M) Bhd (KL:MRDIY) said its second quarter net profit rose 3.3% to RM155.21 million, from RM150.32 million a year earlier, in line with higher revenue, but this was partially offset by higher expenses associated with its business expansion.

Earnings per share for the quarter ended June 30, 2024 (2QFY2024) increased to 1.64 sen from 1.59 sen previously, according to the home improvement products retailer's bourse filing on Tuesday.

The group declared a second interim dividend of 1.2 sen per share, representing a 50% hike compared to a year ago. The ex-date is August 29, with the dividend payable on September 13.

Revenue for the quarter rose 8.8% year-on-year (y-o-y) to RM1.19 billion from RM1.1 billion, primarily driven by positive contributions from new stores, said Mr DIY.

During the quarter, the group opened 42 net new stores, bringing its total store count to 1,340 as at June 30. This marked an increase of 14.7% compared to a year ago.

Despite a 13% y-o-y rise in total transactions which reached 46.2 million, Mr DIY noted lower average basket size — falling 3.8% y-o-y — which the group attributed to lower items per basket, likely because of tightening household spend.

The group’s administrative operating expenses rose 9.3% y-o-y while other operating expenses was up 10.9% y-o-y, mainly due to higher costs associated with its business expansion activities and to support its growing network of stores.

For the first half of FY2024, the group’s net profit rose 7.9% to RM300.1 million from RM278.1 million a year earlier, as revenue grew 9% to RM2.34 billion from RM2.15 billion.

Commenting on the dividend payout, Mr DIY chief executive officer Adrian Ong said in a statement: "This record dividend payout, our highest ever and significantly above our 50-65% targeted payout, reflects our appreciation to our shareholders and our confidence in growing our business.”

Ong added that the group remains well-positioned to meet the evolving needs of households, saying it was conscious of the challenges many Malaysians faced amid rising costs, and is committed to keeping the prices of everyday household essentials affordable and accessible.

The group also mentioned the improving ringgit against major currencies and the influx of foreign investments as positive economic signs that it could look forward to improving customer sentiment, which would in turn fuel its growth.

Mr DIY also highlighted that it has made a strategic investment in the KKV retail chain to open new outlets across the country.

“This move is expected to deliver future growth by attracting a broader customer base and enhancing the overall shopping experience,” said Ong.

KKV is a popular lifestyle store chain featuring a wide range of lifestyle products, catering to a young and trendy demographic.

Mr DIY’s shares closed five sen or 2.3% lower to RM2.10 on Tuesday, giving it a market capitalisation of RM19.85 billion.