MR D.I.Y Achieves Record Dividend Payout Amid Revenue Growth
MR D.I.Y
PETALING JAYA:MR D.I.Y Group, Malaysia’s largest home improvement retailer, has announced a record 73.1% dividend payout ratio for the second quarter ended June 30, 2024 (2QFY2024). This represents a substantial 50.2% increase year-on-year (y-o-y) and is the highest dividend payout since the company’s initial public offering in 2020.
The total dividend for the quarter amounts to RM113.4 million, reflecting the Group’s robust financial performance and commitment to rewarding its shareholders.
Revenue Growth: MR D.I.Y’s revenue for 2QFY2024 rose 9.0% y-o-y to RM1.2 billion, driven by new store openings and a 13.0% increase in transaction volumes, reaching 46.2 million.
Profit Performance: Profit After Tax (PAT) increased by 3.2% y-o-y to RM155.2 million. Gross Profit (GP) for the quarter climbed 7.0% y-o-y to RM544.7 million, maintaining a stable GP margin of 45.5%.
Operating Costs: Operating expenses grew by 10.9% y-o-y, primarily due to higher staff costs associated with the Group’s expansion. Despite this, Profit Before Tax (PBT) rose 3.3% y-o-y to RM207.9 million.
Dividend Payout: The dividend payout for 1HFY2024 totals RM207.9 million, with a payout ratio of 69.3% of PAT. This payout is significantly above the Group’s targeted range of 50-65%.
Strategic Developments
Expansion Plans: The Group’s store network expanded by 14.7% y-o-y to 1,340 stores. Looking ahead, MR D.I.Y plans to enhance its market presence through a strategic investment in the KKV retail chain, which will involve opening new outlets nationwide. This move aims to attract a younger demographic and align with evolving consumer preferences.
Future Outlook: CEO Adrian Ong expressed confidence in the Group’s future, citing positive economic indicators and the improving ringgit as factors that could boost customer sentiment and growth. The company remains focused on offering affordable essentials and strengthening its market position through strategic collaborations.
MR D.I.Y’s strong performance and record dividend payout underscore its successful strategic efforts and its dedication to delivering value to shareholders while navigating the challenges of the Malaysian retail market.
