KUALA LUMPUR (Aug 11): Mr DIY Group (M) Bhd (KL:MRDIY) logged a 15.2% drop in net profit for the second quarter, as higher staff, utility and depreciation costs associated with the expanded store network ate into earnings.
Net profit for the three months ended June 30, 2026 (2QFY2026) dropped to RM134.41 million from RM158.58 million previously, while revenue rose 3.6% to RM1.26 billion from RM1.21 billion. Earnings per share dropped to 1.42 sen from 1.67 sen.
Despite the earnings decline, the group declared an interim dividend of 1.3 sen per share, to be paid on Sept 8, and an additional interim dividend of two sen per share, with book closure and payment date to be announced.
The 232% payout ratio reflects the group’s confidence in its long-term financial strength and its commitment to delivering sustainable shareholder returns, Mr DIY CEO Adrian Ong said in a statement.
"Supported by strong operational cash flows and a healthy financial position, we remain well placed to reward shareholders while continuing to invest in our long-term growth priorities," Ong said in a statement on Tuesday.
The 2QFY2026 drop in net profit was due to an increase in administrative expenses and other operating expenses.
Administrative expenses rose 17.6% year-on-year (y-o-y) to RM62.8 million, while other operating expenses increased 10.8% to RM343.3 million.
Higher administrative expenses reflected investments in headquarters capabilities and its loyalty programme, while other operating expenses rose on higher staff costs, utilities and depreciation of fixed and right-of-use assets in line with its expanded store network.
Its store network rose to 1,610 stores at end-June 2026, compared with 1,502 a year earlier.
For the six months ended June 30, 2026 (6MFY2026), net profit edged down 1.9% y-o-y to RM326.43 million, while revenue rose 6.5% to RM2.63 billion.
Looking ahead, Mr DIY said it will continue to pursue a measured and disciplined expansion strategy, guided by sustainable store-level economics and prudent capital allocation.
Shares of Mr DIY ended one sen or 0.66% higher at RM1.52, valuing the group at RM14.41 billion.