H1 earnings up 55 per cent; company opens new format

Home improvement retail chain Mr. DIY saw a 55 per cent rise in revenues in the first half of the year, even as it grappled with a lockdown that shuttered business establishments across Malaysia towards the end of the period.Malaysia's largest home improvement retailer reported revenues of 1.63 bn Malaysian ringgit (MYR; EUR 327 mio) for the six-month period ending 30 June 2021, up from MYR 1.05 bn in the same period last year. Mr. DIY attributes this to being able to sustain its strong performance during the first quarter for most of the second quarter. It also said that new stores contributed to the company's overall take for the period.For the second quarter, Mr. DIY's revenues rose by 47 per cent to MYR 759.8 mio from MYR 516.6 mio in the same quarter last year, when the company was unable to open its brick-and-mortar stores. Malaysia imposed its first Covid-19-related lockdown from March to early May 2020. During that time, all retail establishments that were deemed non-essential were mandated to close.The company's showing for April to June 2021, however, is weaker than its performance in the first quarter, when it raked in MYR 870.2 mio in revenues.This was because another nationwide lockdown, imposed from 1 June to 16 July 2021, affected its operations. "Only essential retailers and sectors were allowed to operate during this period ... As a result of these restrictions and lower foot traffic, the performance of our stores in June 2021 was impacted," the company explained in its second-quarter interim financial report, which was submitted to Bursa Malaysia, the country's stock exchange.During the period, Mr. DIY launched a new store format called Mr. DIY Express. Media reports state that it has a space of 185.8 m2, smaller than the 929 m2 area that is taken up by the standard Mr. DIY store.Adrian Ong, Mr. DIY chief executive officer, said Mr. DIY Express allows the company to set up shop in rural and smaller towns and make its services accessible to the grassroots."The stores are typically smaller, can be set up quickly and cost-efficiently, making it possible for us to expand the concept quickly across the country. The Mr. DIY Express concept allows us to remain agile and dynamic, to continue to drive growth in this unpredictable retail environment," he said. Four Mr. DIY Express outlets have been opened. These are located in the Malaysian states of Kelantan, Negeri Sembilan, Malacca and Johor.Overall, Mr. DIY opened 93 stores across its three brands - Mr. DIY, Mr. Toy, and Mr. Dollar - during the first half, bringing its total store count to 827 as of the end of June. The company plans to open 82 more branches for the rest of the year to meet its target of 175 outlets, although it added that this would be "subject to circumstances allowing the group to resume normal monthly store opening rates within a reasonable period of time".As of now, Malaysia is on its second highest lockdown level, which allows retail establishments to operate, albeit on restricted hours.