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Interim Results for the 26 Weeks ended 27 September 2025 and Cash Dividend Declaration
MR PRICE GROUP LIMITED
Registration number 1933/004418/06
Incorporated in the Republic of South Africa
ISIN: ZAE000200457
LEI number: 378900D3417C35C5D733
JSE and A2X share code: MRP
("Mr Price" or "the company" or "the group")
INTERIM RESULTS FOR THE 26 WEEKS ENDED 27 SEPTEMBER 2025 AND CASH DIVIDEND DECLARATION
This short-form announcement is the responsibility of the Mr Price board of directors and is a summary of the information in
the detailed results announcement available on: https://senspdf.jse.co.za/documents/2025/JSE/ISSE/MRPE/20112025.pdf
and https://www.mrpricegroup.com and does not contain full or complete details. These documents and the results
presentation to the investment community are available on the group's website at www.mrpricegroup.com and copies may
be requested from the company secretary (Legal@Mrpricegroup.com or +27 31 310 8000) at the company's registered
office. Any investment decision in relation to the company's shares should be based on the full announcement.
MR PRICE GROUP INTERIM RESULTS FOR THE 26 WEEKS ENDED 27 SEPTEMBER 2025
For the 26 weeks ended 27 September 2025 ("Period"), Mr Price Group increased total revenue by 5.4% to R18.6bn. The
group's retail sales growth of 5.5%, was higher than the comparable market's sales growth of 5.3% (RLC: April 2025 -
September 2025). Despite a highly promotional retail sector for most of the period, the group expanded its gross profit (GP)
margin by 30bps to 40.0% and delivered positive operating leverage through strict cost control, expanding its operating
margin by 10bps to 11.5%.
Basic and headline earnings per share of 512.8 cents and 513.0 cents were up 6.5%. Diluted headline earnings per share
grew 6.4% to 497.9 cents.
Despite the group's ability to deliver positive earnings growth for H1, the sales performance is reflective of a consumer
environment that remains constrained. The prolonged period of negative real wage growth through 2022 and 2023 has had
lasting impact, compromising household disposable income with resultant weak levels of consumer expenditure. Short-term
relief through lower interest rates and inflation has not been sufficient to offset these effects, resulting in limited discretionary
spending capacity. Continued negative consumer confidence emphasises this challenging environment.
Group CEO Mark Blair said, "I am pleased that we have once again executed our strategic intent of maximising sales growth
at improved margins. Our gross margin increased despite a very challenging retail environment. Our value focused business
model enabled us to effectively manage overheads and ensure that we consistently deliver positive earnings growth and
returns to shareholders."
An interim dividend of 323.2 cents per share was declared, up 6.5% and a pay-out ratio of 63% was maintained.
Group results summary
Group retail sales of R17.8bn increased 5.5% and comparable store sales increased 2.1%. Other revenue of R625m
decreased 1.6%.
The first quarter of H1 was characterised by shifting school holiday periods and base effects, particularly in the months of
April and June. The group's Q1 retail sales growth of 6.3% resulted in market share gains but faced GP margin compression
of 20bps due to markdowns required in the month of June. The group along with the rest of the sector reported negative
sales growth for the month. The timely markdown activity in June and effective stock management enabled it to exit the
winter season with a clean stock position.
As a result, fresh spring and summer inputs from Q2 enabled more full priced sales for the remainder of the period, albeit at
lower growth levels than Q1, up 4.7% as the consumer environment deteriorated. The rest of the market was highly
promotional in these months, with deep discounting prevalent across the sector. Consequently, the group's sales growth
was in line with the market but came at improved GP margins compared to the prior year.
Group store sales increased 5.4% and online sales were up 9.7%. The group's omni-channel strategy continues to be
effective and aligned with customers shopping preferences. Total unit sales increased 2.5% and retail selling price (RSP)
inflation of 3.0% remained below CPI, as focus remained on delivering value to customers through the group's Every Day
Low Price model.
The group opened 91 new stores during the period, growing its total store base to 3100 stores and increasing weighted
average trading space by 3.5%. New stores across the group's portfolio continue to deliver strong returns.
Cash sales increased 5.6% and constituted 88.2% of retail sales. Credit sales grew 4.3%, driven primarily by existing account
holders and the group approved 22.6% of new account applications. The latest Transunion Consumer Credit Index has
signalled a modest improvement in household credit health, however the group's strict affordability criteria remains
appropriate.
The GP margin increased 30bps to 40.0%. Effective stock management ensured a smooth transition out of winter and into
fresh spring/summer merchandise, enabling all trading segments to expand their margins in Q2.
Profit from operating activities increased 5.7% to R2.1bn. Effective cost control initiatives ensured total expense growth was
contained at 5.6%, despite trading space growth. Operating margin increased 10bps to 11.5% of retail sales and other
revenue. The group's operating margin in H1 is typically seasonally lower than H2.
Segmental performance
Retail sales growth Cont. to retail sales
H1 FY2026 vs H1 FY2025
Apparel segment 5.3% 78.5%
Home segment 5.1% 17.7%
Telecoms segment 12.4% 3.8%
Total group 5.5%
Retail sales for the Apparel segment increased 5.3% to R14.0bn, outperforming the comparable market's (RLC) sales growth
of 4.7% and comparable store sales grew 1.7%. In Q2, retail sales growth slowed for the segment and the comparable
market as the consumer environment softened. During the period, Mr Price Apparel maintained market share and expanded
GP margin, despite the comparable market's sales being highly promotional. On a 12-month basis the division has gained
over R200m in market share. Miladys and Mr Price Sport continued to report improved sales growth. Power Fashion reported
its 14th consecutive quarter of market share gains and delivered the highest sales growth in the segment, while Studio 88
delivered a solid margin accretive sales performance despite high levels of discounting in the branded apparel competitor
environment.
The Homeware segment's retail sales increased 5.1% to R3.2bn and delivered comparable store sales growth of 4.3%. The
comparable market was highly promotional throughout the period, while all of the group's homeware divisions further
expanded GP margins, driven by lower markdowns than the prior year. Yuppiechef continued its omni-channel expansion,
reporting double-digit sales growth and has now gained market share for 18 consecutive months.
The Telecoms segment continued its trend of delivering double-digit sales growth (+12.4% to R678m) and market share
gains (+50bps per GfK). Mr Price Cellular's stand-alone store roll-out momentum continued, with a further 12 stores opened
during the period, closing its footprint at 73, in addition to the existing 481 combo stores. The segment further expanded its
margins during the period, supported by both the Cellular (handsets and accessories) and Mobile offerings.
Financial Services revenue decreased 0.8% to R469m. Debtors' interest and fees were 1.2% lower due to a 100bps reduction
in the repo rate compared to the prior period. The group's prudent credit granting approach has enabled it to maintain its net
bad debt to book ratio at low levels relative to the sector. It remains sufficiently provided for and will continue to manage its
debtors' book cautiously.
The group's inventory management approach is data led and driven by tried and tested processes. It remains a key
competitive advantage which has enabled it to expand its margins despite a volatile period of trade for the sector. At the end
of the period, gross inventory was 4.5% higher and stock freshness (0 - 3 months ageing) remained healthy.
Capital expenditure of R574m was allocated and the annual capex forecast of approximately R1.5bn remains, which includes
the Gauteng DC enhancement and approximately 200 new stores. The group' ended the Period debt free, with cash
resources of R3.0bn and a cash conversion ratio was of 81.8%.
Outlook
The operating environment in South Africa has continued to mirror the volatility of the global economy. GDP growth improved
in Q2 2025, up 0.8% from the 0.1% reported in Q1 2025. However, these levels are not supportive of creating a sufficiently
buoyant economy to enable strong business growth. There have been some areas of improvement under the government
of national unity, but more significant progress is required of national structural reforms to stimulate job creation and create
more sustainable levels of economic growth.
The outlook for the consumer environment is fragile in the short-term, with hopeful improvement in 2026 supported by a
lower inflationary and interest rate environment. Volatility in spending patterns are likely to persist as the monthly window for
consumer spending is limited by constrained disposable income levels. Increasing food inflation and divergence in
discretionary spending will likely place additional drain on share of wallets.
Consumers have become increasingly value-seeking and the group's diversified portfolio of brands remain well placed in
their customer positioning. Mr Price Apparel remains the most shopped apparel retailer in South Africa (MAPS 2025) and
leads the Fashion-value matrix (Borderless Access), highlighting its differentiated fashion and accessible pricing. Mr Price
Apparel, Mr Price Sport and Mr Price Home reported the highest brand equity in their respective segments, a leading metric
for brand health and customer affinity. Power Fashion reported the highest increase in brand equity, testament to its
successful store roll-out strategy and customer acquisition performance.
The group's investment into its brand strength and omni-channel platforms keep it closely aligned with its customers' needs.
Its ongoing merchandise execution, focusing on delivering affordable fashion trends at high volumes, supported by leading
inventory management and an agile supply chain, has enabled it to deliver consistent earnings growth. Its 3-year HEPS
CAGR remains well ahead of the competitor set.
The base becomes increasingly more challenging in the remainder of the financial year, due to the two-pot withdrawals and
combined with improved consumer affordability (lowering inflation and interest rate cuts) which supported increased
consumer expenditure ahead of the festive season in the prior year. Sales calls ahead of these key months in 2025 have
accounted for these factors and the broader macroeconomic conditions. Significant improvements in the operational capacity
of the Durban port have positively impacted stock-flow and inventory management ahead of the key trading months. Retail
sales in the first 7 weeks of H2 were up 3.3% against a firm base of 12.3%, with momentum improving from October to
November.
As has been previously communicated, considerable progress has been made in the group's strategic research informing
capital allocation decisions for future investment. This includes the evaluation of organic and acquisitive growth opportunities
in existing and other high-potential markets.
Blair said, "I have strong confidence in our team, and their ability to continue achieving consistent earnings performances
while also delivering for the future. We remain focused on execution across the business and providing value to all our
stakeholders."
This short form announcement has not been reviewed or reported on by the company's auditors.
ENDS
INTERIM CASH DIVIDEND DECLARATION
Notice is hereby given that an interim gross cash dividend of 323.20 cents per share was declared for the 26 weeks
ended 27 September 2025, a 6.5% increase against the prior year. As the dividend has been declared from income
reserves, shareholders, unless exempt or who qualify for a reduced withholding tax rate, will receive a net dividend
of 258.56 cents per share. The dividend withholding tax rate is 20%.
The issued share capital at the declaration date is 262 348 260 listed ordinary and 1 236 022 unlisted B ordinary
shares. The tax reference number is 9285/130/20/0.
The salient dates for the dividend will be as follows:
Last date to trade 'cum' the dividend Tuesday 09 December 2025
Date trading commences 'ex' the dividend Wednesday 10 December 2025
Record date Friday 12 December 2025
Payment date Monday 15 December 2025
Shareholders may not dematerialise or rematerialise their share certificates between Wednesday, 10 December
2025 and Friday, 12 December 2025, both dates inclusive.
Shareholders should note that dividend payments will be paid via electronic transfer into the bank accounts of
shareholders whose banking details are held by the company's transfer secretaries, Computershare Investor
Services (Pty) Ltd ("Computershare"). Shareholders whose bank account details are not held by Computershare are
requested to provide such details to Computershare on 0861 100 950 to enable payment of the dividend and all
future dividends. Where shareholders do not provide the transfer secretaries with their banking details, the dividend
will not be forfeited, but will be marked as "unclaimed" in the share register until the shareholder provides the transfer
secretaries with the relevant banking details for payout.
The dividend was approved by the Board in Durban on 19 November 2025.
DIRECTORS
NG Payne* (Chairman), MM Blair (CEO), P Nundkumar (CFO), N Abrams*, MJ Bowman*, JA Canny*, RJD Inskip*,
R Nkabinde*, H Ramsumer*, LA Swartz*
* Non-executive director
Durban
20 November 2025
JSE Equity Sponsor and Corporate Broker
Investec Bank Limited
Date: 20-11-2025 07:05:00
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