Department chain store owner Mr DIY Group (M) Bhd's net profit for the fourth quarter ended Dec 31, 2023 (4Q23) increased 17% to RM158.6 million due to the price adjustment exercises a year earlier and the normalisation of freight costs to pre-pandemic levels.

In an exchange filing today, the company said its 4Q23 revenue was up 8% to RM1.467 billion from the same period a year earlier.

For the 2023 financial year (FY23), Mr DIY posted a net profit of RM560.7 million on the back of a turnover of RM4.359 billion, up 19% and 9% respectively from FY22.

Commenting on the numbers, it said the FY23 revenue was primarily driven by a positive contribution from new stores, which grew by 16.8% y-o-y leading to a corresponding 16.0% y- o-y increase in total transactions to RM165.1 million.

The revenue increase was partially offset by negative like-for-like sales growth as a result of weaker retail sentiment during the period, it added.

For FY23, its gross profit rose by 20.0% y-o-y to RM1.977 billion, mainly driven by higher revenue and higher gross profit margins, adding that its gross profit margin was 45.4% compared to 41.3% in the corresponding period in the preceding year.

"This notable improvement is attributed to the significant decline in freight costs, which has been easing since 4QFY2022 as well as the positive impact of the price adjustment exercises carried out in FYE2022," it said.

On its prospects, it said the group targeted to have 2,000 stores across its core retail brands by 2028.

The company has declared an interim single tier dividend of RM0.01 per ordinary share approximately RM94.4 million in respect of the financial year ended Dec 31, 2023, to be paid on March 22.

Mr DIY's shares closed at RM1.53 today, resulting in a market capitalisation of RM14.4 billion.