Mr Price Group (MRP) Investor Day 2024 summary

Strategic Vision, Culture, and Business Model

• Aims to be Africa's most valuable retailer, driven by people-first culture, founder values, and six strategic pillars including stakeholder engagement, growth, brand promise, people, enablement, and sustainability.

• Operates a cash-based, omni-channel model with a defensive low-cost structure and focus on everyday low prices.

• Maintains strong brand equity, leading market share in fashion-value retail, and a diversified portfolio across apparel, homeware, and financial services.

• Leadership succession, internal talent development, and transformation are prioritized, with high ACI representation and strong associate engagement.

• Integration of acquisitions is performance-driven, with gradual alignment to group culture and systems, and selective synergies.

Financial Performance and Guidance

• Retail sales grew from ZAR 21.7bn in FY2020 to ZAR 36.6bn in FY2024, with a 5-year CAGR of 11.9%, operating profit up 33%, and EBITDA up 47%.

• Store count increased to 2,900 and associates to ~32,000, driven by acquisitions and organic growth.

• Maintained a five-year average operating margin of 16.3%, with group margins at a cyclical low in FY2024 but expected to recover.

• Medium-term targets: ROE 24–26%, operating margin 13–15%, gross profit margin 40–42%, stock turn >4.0x, and ZAR 5.5bn CapEx planned for FY2025–FY2028.

• Achieved 38-year HEPS CAGR of 18.4% and dividend CAGR of 19.6%, with strong cash generation and low gearing.

Growth Strategy, Market Positioning, and Innovation

• Pursues both organic and acquisitive growth, with launches in Kids and Cellular gaining 90bps market share each in the last 12 months.

• Acquisitions (Power Fashion, Yuppiechef, Studio 88) have expanded reach, diversified the customer base, and added R10.7bn in sales since 2020.

• Store footprint to expand from 2,900 to ~3,700 by 2029, targeting 150–175 new stores per year in high-return locations.

• Omni-channel strategy leverages digital engagement, with online sales doubling since 2020, e-commerce at just over 2% of sales, and continued investment in technology and store experience.

• Invests in technology modernization, AI, automation, and data-driven decision-making for merchandise planning and operational efficiency.