KUALA LUMPUR (May 9): Home improvement products retailer Mr DIY Group (M) Bhd (KL:MRDIY) said on Thursday its net profit rose 13% in the first quarter from a year earlier thanks to sales from new stores, while margins expanded as supply chain disruption and freight costs eased.

Net profit for the three months ended March 31, 2024 rose to RM144.88 million from RM127.77 million in the same quarter a year ago, Mr DIY said in an exchange filing.

Revenue climbed 9.2% to RM1.14 billion from RM1.05 billion, driven mostly by a 15.4% growth in new stores to 1,292 stores from 1,125 stores, with transaction volume rising in tandem by 15.4% to 44.2 million. Gross profit margin rose 1.5 percentage points year-on-year to 45.8%.

The group declared a first interim dividend of one sen per share or about RM94.5 million for FY2024, to be paid on June 21.

Mr DIY said it is pursuing “measured store expansion strategy” as well as “horizontal and vertical acquisitions” to accelerate growth.

“We are confident of our core business strategies and believe that the group is well-positioned to capitalise on growth opportunities,” it said.

The group is expected to open another 180 new stores this year and surpass its target of 2,000 stores by 2028, according to Mr DIY chief executive officer Adrian Ong in a statement.

Compared to its immediate preceding quarter, Mr DIY’s net profit fell 8.67% from RM158.63 million in the fourth quarter ended Dec 31, 2023 (4QFY2023), while revenue slipped marginally by 0.32% from RM1.15 billion.

The slight decline quarter-on-quarter is due to higher sales in 4QFY2023 from the year-end school holidays and other festivities, it said.

Shares in Mr DIY, which shot up to a one-year high of RM1.80 prior to the results announcement, finished at RM1.79 on Thursday — one sen or 0.56% higher than its previous close, valuing the group at RM16.91 billion. The counter has risen 23.45% year to date.