In a filing with Bursa Malaysia today, the home improvement retailer said revenue increased 4.9% year-on-year (y-o-y) to RM1.1 billion from RM1.05 billion previously, primarily attributed to positive contributions from new stores.
In tandem with this, total transactions rose 13.1% y-o-y to 40.9 million transactions in Q2 FY2023.
“The group opened 43 net new stores during the quarter, bringing the total store count to 1,168 in the first half of FY2023 – a 17.6% y-o-y increase compared to the corresponding period in FY2022,” it said.
Its cumulative net profit for the first half of FY2023 rose 18% to RM278.09 million from RM235.69 million a year earlier.
The group said its gross profit margin rose 5.3 percentage points to 46.3% compared with Q2 FY2022.
“This notable improvement is due to a significant decline in freight costs, which has normalised to pre-pandemic levels, as well as the impact of the price adjustment exercise carried out in FY2022,” the group said.
On its prospects, the group remained confident to continue delivering sustainable long-term growth.
“The group will continue to invest in growth through a store expansion strategy that allows it to penetrate into both market centres and less urban areas to meet the needs of the underserved value shopper.
“Growth will be funded by strong operating cash flow and net cash balance sheet position, which will also support a robust dividend payout policy,” it said.
Additionally, Mr DIY said it was on track to open at least 180 new stores across all three brands, bringing the total store network to over 1,200 stores nationwide.
It declared a dividend of 0.8 sen per share totalling RM75.5 million, versus RM56.6 million for Q2 FY2022, to be paid on Sept 22. It is equivalent to a dividend payout of 50.2% of net earnings.
In a statement, CEO Adrian Ong said the steady growth in Q2 is a strong signal that Mr DIY’s value-for-money proposition was relevant and resonated with today’s value-conscious shoppers.
“We are also highly encouraged by the significant progress in the recovery of our profit margins despite current operating challenges, which is a convincing indicator of the strength and resiliency of the business,” he added.