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Kuala Lumpur, August 12, 2026 – MR DIY Group, Malaysia’s largest home improvement retailer, reported a significant decline in second quarter earnings, with profit after tax slipping 15.2 percent to RM134.4 million, underscoring the impact of rising operating costs and weaker consumer spending despite steady revenue growth.
The company’s profit before tax fell 14.7 percent to RM180.8 million, compared with RM211.9 million a year earlier.
Revenue, however, rose 3.6 percent to RM1.25 billion, supported by store expansion and higher transaction volumes.
Gross profit increased modestly to RM596.2 million, maintaining a margin of 47.4 percent.
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MR DIY’s profitability was eroded by surging expenses.
Administrative costs climbed 17.6 percent to RM62.8 million, driven by investments in headquarters operations, loyalty programs, and fundraising activities.
Other operating expenses rose 10.8 percent to RM343.3 million, reflecting higher staff costs, utilities, depreciation, and the structural burden of Malaysia’s rental sales and service tax introduced in July 2025.
Promotional campaigns aimed at boosting customer traffic also reduced profitability.
The company reported a 3.5 percent decline in average basket value, as lower selling prices offset gains in transaction growth.
Expansion Strategy Remains Aggressive
Despite earnings pressure, MR DIY continued to expand its footprint.
As of June 30, 2026, the retailer operated 1,610 stores, up from 1,502 a year earlier.
Transactions rose 7.3 percent to 52 million, reflecting stronger customer reach.
Like for like sales, however, were softer, partly due to the earlier timing of Hari Raya, which lifted first-quarter sales instead of the second quarter.
Management emphasized that a stronger Ringgit helped reduce import costs, cushioning some of the margin pressures.
Investments in loyalty programs and headquarters capabilities are expected to strengthen customer retention and operational efficiency over the long term.
The company also highlighted higher professional fees tied to corporate social responsibility initiatives and fundraising activities, signaling a broader effort to reinforce its brand and financial base.
MR DIY faces persistent challenges as inflationary pressures weigh on consumer spending.
Lower basket values point to cautious household budgets, while rising staff and utility costs continue to erode margins.
The rental SST adds a structural expense that could further constrain profitability in the coming quarters.
MR DIY’s second quarter results illustrate the tension between growth and profitability.
The retailer’s ability to expand its store network and increase transactions demonstrates strong market presence, but higher operating costs and promotional pricing strategies are eroding earnings momentum.
The months ahead will test whether investments in loyalty programs and efficiency measures can offset structural cost burdens and restore earnings growth.
