MR DIY Group (M) Bhd, a popular home appliance company, felt the effects of the government's decision to streamline diesel subsidies last June in an effort to crack down on fraudulent activities.
This move has increased costs for businesses and households.
In the third quarter (Q3) of 2024, MR DIY's profit fell slightly to RM121.65 million, compared to RM123.95 million in the same period last year.
This is due to higher expenses that include administrative and operational costs.
The government's decision to streamline targeted diesel subsidies in June caused prices to jump by 56%, from RM2.15 to RM3.35.
As a result, the pace of spending is slower, directly impacting MR DIY.
Despite opening 49 new stores in Q3, average spend per customer fell by 90 cents, a bigger drop than in previous years.
Market analysts had mixed reactions with some lowering their earnings forecasts.
However, others believe the future may improve.
Factors such as higher wages and government financial assistance in 2025 may increase consumer spending which indirectly benefits MR DIY.
Since its launch in 2005, MR DIY has grown rapidly, with over 1,300 store branches across Malaysia.