Who would have thought, retail that used to sound ordinary, has now turned into a fast and aggressive giant! PT Daya Intiguna Yasa (MDIY) recorded extraordinary growth in the 2024 fiscal year. However, their revenue jumped 73.9% year-on-year, from IDR 3.9 trillion in FY23 to IDR 6.8 trillion in FY24. In fact, if calculated based on pro forma, the increase remains solid at +39.6% YoY.
What the hell is the secret? As it turns out, the answer is a massive store expansion. MR. DIY has successfully added 263 clean stores so that the total number of outlets now reaches 961 units, spread across 97% of provinces and 75% of cities/districts throughout Indonesia. Imagine, from Sabang to Merauke, there is almost certainly their shop!
Expansion + Marketing Strategy = Surge Deals
Not only opening a store, they also incorporated a subsidiary of Mitra Indoguna Yasa (MIY) which further strengthened their income. Plus, they are on the marketing side. Result? The number of transactions exploded +37.6% YoY to 88.7 million transactions. However, it should be noted that same-store sales growth (SSSG) did start to stabilize at 5%, down from 30% in the previous year — a signal that the expansion is bigger than the growth per store.
Gross Profit & Net Profit Soar — Thanks to Scale & Efficiency
MDIY managed to grow its gross margin from 42% in FY23 to 55% in FY24. If you ask why did it go so far? The answer lies in three things:
- Larger business scale gives bargaining power to suppliers
- Logistics efficiency thanks to higher store density
- Mix products that are more targeted to consumer tastes
The domino effect was felt in the operating margin which rose to 23.3% from the previous 14.6%. In fact, net profit rose dramatically by 205.6% to IDR 1.1 trillion. you, right? The net profit margin widened to 15.9% from only 9% last year.
Healthy Finances, Debt Shrinks, Cash Flows Heavily
In the midst of crazy expansion, MDIY can still maintain its excellent financial condition. They managed to reduce net debt by 37.3% YoY to IDR 849 billion. The gearing ratio also improved drastically from 1.7x to just 0.5x — a figure that reflects the company’s financial stability. The ratio of net debt to EBITDA also decreased to 0.4x from the previous 1.5x.
Cash flow from operations remained resilient at IDR 767.3 billion. But, there is a note: the cash conversion cycle (CCC) is longer, from 114 days to 166 days. This is mainly because inventory turnover increased after the acquisition of MIY — from 117 days to 169 days. This is natural for retail companies that are consolidating their supply chains.
FY25 Outlook: Stepping On the Gas Again, Opening 270 New Stores
Next year? Don’t expect them to slow down. Management targets to open more than 270 more stores in FY25 — aka they have not finished planting their nails in the Indonesian retail market. In the long term, they even target the addition of 120–150 new stores every year.
Remarkably, they remain optimistic that they can maintain a gross margin in the range of 54-55%. And although the world is still haunted by geopolitical tensions and export-import tariffs, MDIY ensured that U.S. tariffs on Chinese goods have not had a significant impact on their operations. Why? Because they are still using the quota that has been secured before.
Conclusion: MDIY is an Unbeatable Growth Machine
With aggressive expansion, a sharp marketing strategy, and incredible operational efficiency, MDIY isn’t just growing—they’re running fast. Margins are getting thicker, profits are skyrocketing, and debt is leaner. This is a combination that is rarely found in the Indonesian retail sector.
For those of you who are looking for stocks with long-term growth prospects and proven management that is able to execute strategies carefully, MDIY is definitely worth your watchlist.
Because in the world of investing, the fast ones don’t necessarily win — but the focused and consistent ones like MDIY, may survive and dominate.
References: (Daya Intiguna Yasa))
