South Africa · Delayed Price · Currency is ZAR · Price in ZAc Mr Price Group Earnings Call Transcripts
Fiscal Year 2026
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Delivered consistent earnings growth with revenue up 4.2% and normalized HEPS up 8%, supported by strong cost control, margin expansion, and strategic investments. NKD acquisition completed, with integration and further store growth planned.
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Regulatory approvals for the NKD acquisition are complete, with closing set for March 2026. The deal is expected to be earnings accretive in year two, supported by NKD's strong cash generation and robust store economics. Management emphasizes disciplined capital allocation, sustained dividend policy, and long-term growth in Central and Eastern Europe.
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Revenue grew 5.4% to ZAR 18.5bn, with strong gross profit and disciplined cost control driving HEPS up 6.5%. Cash balance rose to ZAR 3bn, and all segments delivered profit growth despite a challenging consumer environment. Management expects continued margin discipline and targeted expansion.
Fiscal Year 2025
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The acquisition of NKD offers a strategic entry into Europe's high-growth value retail sector, with strong operational alignment and significant expansion potential. The deal is fully funded, introduces manageable debt, and is expected to be transformative over the long term.
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Revenue grew 7.9% to ZAR 40.9 billion, with strong H2 momentum, double-digit earnings growth, and market share gains across all divisions. Robust cash generation, disciplined capital allocation, and continued investments in technology and supply chain underpin a positive outlook for FY2026.
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Interim results showed 5.2% revenue growth and strong market share gains despite a tough H1, with double-digit sales growth in early H2 and robust cash reserves. Continued store expansion, improved consumer sentiment, and regulatory changes are expected to drive further gains.
Fiscal Year 2024
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The group is advancing a tech-driven, scalable supply chain, expanding its Gauteng hub by 2026, and integrating new divisions for efficiency. ESG is deeply embedded, with strong supplier compliance, significant plastic reduction, and over half of products sourced from Africa. Risk is managed through diversified logistics and direct importation.
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A unique people-first culture and disciplined strategy have driven strong growth, diversification, and operational resilience, with retail sales up 69% and store count more than doubling in five years. Margin expansion, omni-channel integration, and scalable growth remain priorities as the group targets further market share gains and prepares for an improving economic cycle.
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Revenue grew 15.5% and operating profit hit a record, driven by market share gains and improved margins. Strong H2 performance, robust cash generation, and disciplined capital allocation position the group for further growth, despite ongoing supply chain and macroeconomic challenges.