MR. D.I.Y. Holding (Thailand), the Bangkok-listed operator of the low-price home goods chain, said its third-quarter net profit rose 7.1% from a year earlier to 648.1 million baht, as a 20.2% jump in sales to 5,920.4 million baht from new stores was partly offset by thinner margins and higher operating costs.

The result gives investors a read on Thai household spending at the cheap end of the market. Thailand's economy has contended with a slump in foreign tourism, and MR. D.I.Y.'s numbers show where its growth is coming from: opening more shops, while sales at existing outlets barely move.

MR. D.I.Y. Thailand grows through new stores

The company opened 55 stores in the July to September quarter, taking its network to 1,300 outlets nationwide and its additions for the first nine months of 2026 to 180, according to its results release. Chief Executive Andy Chin said the company remained on track to open 210 stores this year, with all the remaining planned stores already under construction.

Same-store sales growth was 0.7%. The company said that figure was supported by more transactions and a higher average basket value. Total transaction volume rose 18.5% to 35.9 million, according to figures reported by Kaohoon International, and standalone stores generated 4,342.7 million baht of sales, up 27.6% and equal to 73.5% of retail store sales.

The release said demand rose for cleaning and home repair supplies in flood-affected areas toward the end of September, a short-term boost on top of steady demand for everyday essentials. Total revenue, including other income, came to 5,964.1 million baht, up 20.3% from 4,959.6 million baht, Kaohoon International reported.

For the first nine months, the company said net profit grew 17% and revenue rose 20%, helped by a 20% increase in transactions.

Margins narrow as costs climb

Profit grew far more slowly than sales in the third quarter. Gross profit rose 15.5% to 2,982.6 million baht, but gross margin fell 2.1 percentage points to 50.4% from 52.5%, according to Kaohoon International. The outlet said product cost inflation and promotions to clear inventory before the fourth-quarter peak season weighed on margins.

Operating expenses also rose faster than revenue. Selling and distribution expenses climbed 22.7% to 1,750.4 million baht and administrative expenses rose 14.4% to 324.7 million baht, taking selling, general and administrative costs to 34.8% of revenue. Kaohoon International attributed the increase to depreciation at new stores, more staff, expanded warehousing and higher local fuel prices.

Operating profit rose 4.8% to 951.2 million baht, according to the same report. Net profit margin narrowed to 10.9% from 12.2% a year earlier. Finance costs were a bright spot, falling 18.7% to 80.5 million baht, while interest expense on interest-bearing loans dropped 91.3% to 2.6 million baht.

A highlights list in the company's English-language release put third-quarter profit growth at 17.1%. The body of that release, the Thai-language version and the year-earlier comparison of 604.9 million baht reported by Kaohoon International all point to 7.1% for the quarter; the 17% figure applies to the nine-month period.

Dividend payout and the year-end season

The board approved an interim dividend of 0.06 baht a share for the third quarter, a total payout of about 361 million baht. Kaohoon International put the quarter's payout ratio at 55.7%. Shares go ex-dividend on Nov. 23, and payment is due on Dec. 9.

Including earlier interim payments, the company has declared 0.19 baht a share, or 1,113 million baht, for the first nine months of 2026, a payout ratio of 53.4%, according to the release.

For shareholders, the question is whether expansion can keep carrying earnings when existing stores are growing so slowly. New outlets add revenue quickly but also add rent, staff and depreciation before they mature, which is visible in the gap between the 20.2% rise in sales and the 4.8% rise in operating profit. Sales at standalone stores, up 27.6%, grew faster than the company as a whole.

Management is leaning on the year-end shopping period. Chin said the company's priorities were to capture seasonal demand and make use of its larger network. He described the offer as "quality, affordable everyday essentials" for Thai consumers.

The company calls the year-end its peak retail season, and it entered that period after running promotions to clear inventory. That should leave shelves positioned for holiday demand, though it also means margins start the period from a lower base than a year ago.

The next markers are the Nov. 23 ex-dividend date and the company's full-year results, which will show whether it hit its target of 210 new stores and whether gross margin recovered from 50.4% in the peak quarter.