Mr Price Group (MRP) H1 2026 earnings summary

Executive summary

• Revenue for the first half grew 5.4% to R18.6bn, with retail sales up 5.5% and comparable store sales up 2.1%, outpacing the market.

• Gross profit increased 6.3% to R7.1bn, with gross profit margin up 30bps to 40.0% and operating margin up 10bps to 11.5% due to strict cost control.

• Operating profit rose 5.7% to R2.1bn, and HEPS increased 6.5% to 513.0c; diluted HEPS up 6.4% to 497.9c.

• Cash reserves surged 37.7% to R3.0bn, with zero long-term debt.

• Interim dividend declared at 323.2c per share, up 6.5%, maintaining a 63% payout ratio.

Financial highlights

• Profit before tax increased 7.7% to R1.8bn; profit after tax up 7.3% to R1.33bn.

• EBITDA increased 5.5% to R3.7bn; cash conversion ratio at 81.8%.

• Expenses grew 5.6% to R5.9bn, with strict cost control and overhead management.

• Net finance expenses decreased 4.9% due to higher interest earned on positive cash balances.

• Capital expenditure for the period was R574m, with an annual forecast of R1.5bn.

Outlook and guidance

• Management expects to land within medium-term target ranges for expenses (27.5%-28.5% of RSOI) and GP margin (40%-42% for group, 41%-43% for home sector).

• Macro environment shows signs of improvement: stable electricity, better port operations, and lower inflation (~3%).

• Retail sales post-period up 3.1%-3.3% against a high base; momentum improving into November.

• Cautious optimism for consumer revival as base effects normalize in 2026.

• Focus remains on growth, supply chain excellence, and technology evolution.