MR D.I.Y. Q2 2025: Steady Profit Growth and a Generous Dividend Payout
MR D.I.Y. Group (M) Berhad, a name synonymous with home improvement and value shopping in Malaysia, has just released its financial results for the second quarter ended June 30, 2025. The report reveals a story of resilient growth, impressive margin expansion, and a strong commitment to its shareholders. Despite a challenging market, the company continues to expand its footprint and deliver positive results. Let’s dive into the key numbers and what they signal for the popular retailer.
Core Financial Highlights: A Closer Look at the Numbers
Revenue and Profitability: Slow but Steady Wins
In the second quarter of 2025, MR D.I.Y. demonstrated steady growth, building on a high base from the previous year which included the Hari Raya festive season. The growth was primarily driven by the continuous expansion of its store network.
Q2 2025 (Current Quarter)
Revenue: RM 1,214.2 million
Gross Profit: RM 579.5 million
Net Profit: RM 158.6 million
Q2 2024 (Same Quarter Last Year)
Revenue: RM 1,196.2 million
Gross Profit: RM 544.7 million
Net Profit: RM 155.2 million
While revenue saw a modest increase of 1.5%, the real story lies in its profitability. Gross profit jumped by a healthy 6.4%. This was largely due to a significant improvement in the gross profit margin, which rose by 2.2 percentage points to 47.7%. The company attributes this to lower average inventory costs, thanks to a stronger Malaysian Ringgit against the US Dollar and Chinese Renminbi. This indicates efficient cost management and favourable currency trends benefiting the bottom line.
Earnings Per Share and Shareholder Value
The growth in net profit translated directly into higher earnings for shareholders, reinforcing the company’s value-creation journey.
Q2 2025 (Current Quarter)
Basic Earnings Per Share (EPS): 1.67 sen
Q2 2024 (Same Quarter Last Year)
Basic Earnings Per Share (EPS): 1.64 sen
Operational Strength: More Stores, More Customers
MR D.I.Y.’s expansion strategy remains in full swing. The Group opened 31 net new stores during the quarter, bringing its total network to an impressive 1,502 stores—a 12.1% increase year-on-year. This expansion led to a 5.0% rise in total customer transactions, reaching 48.5 million. However, the average basket size saw a slight dip of 3.3%, which the report explains was due to customers purchasing fewer items per transaction.
A Treat for Shareholders: The Dividend Announcement
For investors, one of the most exciting pieces of news is the dividend declaration. The Board has declared an interim single-tier dividend of 1.5 sen per ordinary share, amounting to approximately RM142.1 million. This represents a remarkable payout ratio of 89.6% of the quarter’s net profit, reflecting the Group’s robust cash flow and its unwavering commitment to rewarding its shareholders.
Navigating the Future: Risks and Strategic Outlook
Potential Headwinds on the Horizon
Like any major retailer, MR D.I.Y. operates in a dynamic environment. The company acknowledges several external factors that could pose challenges, including:
- Ongoing market volatility from geopolitical tensions.
- Potential tariff adjustments affecting import costs.
- Domestic policy changes, such as the revised Sales and Service Tax (SST) and new EPF contribution rules for foreign workers.
MR D.I.Y.’s Game Plan
Despite these potential headwinds, the management does not anticipate any material impact on its business operations. The Group’s strategy remains clear and focused: continue to expand its retail footprint by strategically opening new stores across its core brands (MR. D.I.Y., MR. TOY, and MR. DOLLAR). This expansion, coupled with investments in technology to boost operational efficiency, is aimed at solidifying its market leadership and reinforcing its brand as the go-to value retailer for all Malaysians.
Summary and Outlook
In summary, MR D.I.Y.’s second-quarter performance for 2025 paints a picture of a resilient and well-managed company. It successfully navigated market conditions to deliver profit growth, driven by outstanding margin improvement and continued expansion. The generous dividend payout further solidifies its reputation as a shareholder-friendly company.
Looking ahead, while external risks are present, the company’s clear strategic direction and strong market position provide a solid foundation for future growth. Investors will be watching closely to see if the momentum in margin expansion and store growth can be sustained.
Key risks to monitor include:
- The impact of global economic volatility and currency fluctuations on import costs.
- Changes in domestic consumer spending habits in response to new tax policies.
- Maintaining a balance between rapid store expansion and per-store profitability.
Final Thoughts
From a professional standpoint, MR D.I.Y.’s ability to significantly expand its gross margin in the current economic climate is particularly noteworthy. It points to strong procurement strategies and the effective leveraging of favourable currency movements. While top-line growth was modest this quarter, the sharp focus on profitability and shareholder returns is a clear and positive signal.
With continued store expansion, do you think MR D.I.Y. can accelerate its revenue growth in the coming quarters?
We invite you to share your views on this quarter’s results in the comments section below!