MR D.I.Y Group Bhd chief executive officer Adrian Ong
KUALA LUMPUR: MR D.I.Y Group Bhd has raised its dividend payout ratio for the fourth quarter ended Dec 31, 2024 (4Q24) to 115.7%, up 80.3% year-on-year (YoY).
The home improvement retailer, in a statement, said the dividend payout of RM170.3mil is equivalent to a payout ratio of 115.7% of profit after tax (PAT).
The total dividends for the financial year ended Dec 31, 2024 (FY24) amounted to RM472.9mil, representing an 83.1% payout of profit after tax (PAT).
“The higher payout exceeds the target range of 50-65%, signalling MR D.I.Y.’s positive cash position, strong cash flow and steady profitability. It also reflects our confidence in the company’s future earnings while directly benefiting our loyal shareholders with higher returns on their investments.
“Most importantly, it gives us the resources to strategically invest in sustainable growth and aim for a higher dividend payout ratio, to balance the interest of all stakeholders,” chief executive officer Adrian Ong said.
In 4Q24, MR D.I.Y’s net profit stood at RM147.2mil, or earnings per share of 1.56 sen, compared with RM158.6mil, or 1.68 sen, in the year-ago quarter.
Revenue for the quarter grew 2.6% year-on-year to RM1.2bil, driven by a 13.8% increase in store count, which rose from 1,261 as of Dec 31, 2023, to 1,435 as of Dec 31, 2024.
MR D.I.Y. said transaction volume also increased by 5.9% YoY to 47.1 million.
Revenue growth was partially offset by negative like-for-like sales and a 3.0% YoY decline in average basket size, reflecting weaker consumer sentiment.
Revenue growth was partially offset by negative like-for-like sales and a 3.0% YoY decline in average basket size, reflecting softer consumer sentiment.
MR D.I.Y. said the gross profit margin for 4Q24 improved by 0.9 percentage points YoY to 46.7%, mainly due to lower purchasing costs arising from a favourable exchange rate in the latter half of FY24.
For FY24, the group posted cumulative revenue of RM4.7bil and a net profit of RM568.9mil, marking year-on-year growth of 6.7% and 1.5%, respectively, compared to FY23.
“Looking ahead, we are confident in our ability to navigate the current landscape, leveraging our extensive network, and deep understanding of what constitutes everyday essentials for different consumer segments across the country.
“As households remain cautious with spending –trading down on price where possible and seeking out value – we are well-positioned to meet their needs. This transition period presents challenges, but we see it as an opportunity to reinforce our leadership position as Malaysia’s preferred household retailer. Our confidence in our long-term growth remains unwavering,” Ong said.
