KUALA LUMPUR (Aug 9): Mr DIY Group (M) Bhd’s net profit increased 11.19% to RM150.32 million for the second quarter ended June 30, 2023 (2QFY2023), from RM135.19 million a year prior, on the back of a higher revenue and gross profit margin.

Revenue rose 4.85% to RM1.1 billion from RM1.05 billion in 2QFY2022 on positive contributions from new stores, the home improvement retailer said in a filing to Bursa Malaysia.

Total transactions rose 13.1% to 40.9 million, the group said, adding that it opened 43 new stores during the quarter, bringing the total store count 1,168.

Mr DIY said its gross profit margin rose 5.3 percentage points to 46.3% compared with 2QFY2022.

“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.

MrDIY declared a dividend of 0.8 sen per share totalling RM75.5 million, versus RM56.6 million for 2QFY2022, and is equivalent to a dividend payout of 50.2% of net earnings.

The group's cumulative net profit for the first half of FY2023 rose 18% to RM278.09 million from RM235.69 million a year earlier.

Six-month revenue increased 9.8% to RM2.15 billion from RM1.95 billion, primarily driven by positive contributions from stores, which grew 17.6%. As a result, total transactions rose 15.5% year on year to 79.1 million transactions, the group said.

On prospects, the group said it remains confident in its ability to continue delivering sustainable long-term growth.

“The steady growth across all key metrics is a strong signal that MR DIY's strong value-price proposition is relevant and resonates with today's value-conscious shopper,who is looking for exceptional value when purchasing everyday essentials,” the group said.

The retailer said it remains on track to open at least 180 new stores across all three brands, which will bring the total store network to over 1,200 stores nationwide.

MR DIY shares closed four sen or 2.88% higher at RM1.43, valuing the group at RM13.49 billion.