Mr DIY Group (M) Bhd has reported a 7.2% decline in net profit for the fourth quarter ended Dec 31, 2024 (4QFY2024), recording RM147.2 million compared to RM158.63 million a year earlier. The drop was attributed to higher costs linked to business expansion and a growing store network.
Rising Expenses Amid Growth
The company saw a substantial rise in administrative and operating expenses, which increased by 25% and 12% to RM55.7 million and RM291 million, respectively. Key cost drivers included higher staff wages, increased utility expenses, and depreciation of right-of-use assets and fixed assets. Additionally, an extra RM4.9 million was allocated to support the operation of new automated warehouses and other warehouse facilities.
Revenue Growth Despite Challenges
Despite the profit decline, Mr DIY’s revenue saw a 2.6% increase to RM1.18 billion from RM1.15 billion in 4QFY2023, fueled by a 13.8% expansion in store count. The retailer now operates 1,435 outlets, up from 1,261 a year ago.
Dividend Payout Reaches Record High
Mr DIY declared an interim dividend of 1.8 sen per share for the quarter, amounting to RM170.3 million, scheduled for payment on March 28. This brings the total payout for FY2024 to five sen per share (RM472.9 million), marking a significant increase from 3.2 sen per share (RM264.25 million) in FY2023—the highest payout since its listing in October 2020.
Full-Year Performance and Future Strategy
For the full financial year, net profit grew by 1.5% to RM568.94 million from RM560.68 million in FY2023, with revenue climbing 6.7% to RM4.65 billion from RM4.36 billion. Mr DIY’s CEO, Adrian Ong, described 2024 as a year of “moderation and strategic opportunity.” While acknowledging weak consumer sentiment and limited household disposable income, he emphasized that the company used this period to refine its strategies—reassessing its product mix, strengthening its value proposition, and deepening customer engagement.
“We have actively diversified our offerings through meaningful collaborations with like-minded, growth-focused retailers and established local brands, ensuring we stay ahead of evolving customer needs,” said Ong.
Market Outlook
Despite recent financial headwinds, Ong remains confident in Mr DIY’s long-term growth potential. The company’s shares closed at RM1.58 on Thursday, up four sen (2.6%), giving it a market capitalisation of RM14.58 billion. However, the stock has declined over 15% year-to-date, reflecting market adjustments amid ongoing economic challenges. As Mr DIY continues to expand, investors and consumers alike will be keen to see how its strategic refinements translate into sustainable growth in the coming years.
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