Mr Price Group (MRP) H1 2025 earnings summary

Executive summary

• Revenue rose 5.2% year-over-year to ZAR 17.6 billion, with retail sales up 5.1% and market share gains of 60bps, supported by double-digit sales growth into H2 and robust post-period trading momentum.

• Gross profit increased 8.1% to ZAR 6.8 billion, with gross margin expanding 110bps to 39.7%.

• Headline earnings per share (HEPS) grew 7.1% to 481.8c, diluted HEPS up 6.5%, and an interim dividend of 303.6c per share was declared, up 7.1%.

• Cash reserves surged 90.4% to ZAR 2.2 billion, with a cash conversion ratio of 83.7%, and the group remains debt free.

• 92 new stores opened, bringing the footprint to 2,958, with the 3,000th store milestone imminent and strong new store returns.

Financial highlights

• EBITDA increased 5.8% to ZAR 3.5 billion; operating profit rose 4% to ZAR 2 billion; net profit attributable to shareholders up 7.3%.

• Dividend payout ratio maintained at 63%.

• Net working capital at (ZAR 287 million); balance sheet remains debt free and unencumbered.

• Cash conversion ratio improved to 83.7%.

• Dividend per share up 7.1% to 303.6c.

Outlook and guidance

• H2 expected to outperform H1, supported by improved consumer sentiment, lower inflation, anticipated interest rate cuts, and retirement system reforms.

• Store expansion to continue, with about 108 new stores planned for H2, targeting a total of about 200 for the year.

• Expense-to-sales ratio targeted at 28% by year-end, with operating expenses expected to rise slightly in H2 due to space growth and performance-based remuneration.

• Focus remains on profitable market share gains, comp sales growth, and selective integration of acquisitions.

• Festive season inventory was planned early to mitigate supply chain risks; strong sales momentum seen in Q2 and early Q3.