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Annual Results for the 52 Weeks ended 28 March 2026 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")
ANNUAL RESULTS FOR THE 52 WEEKS ENDED 28 MARCH 2026 AND CASH DIVIDEND DECLARATION
This short-form announcement has been prepared in compliance with the Listings Requirements of the JSE Limited and is the
responsibility of the Mr Price board of directors. It is a summary of the information in the detailed results announcement available
on: https://senspdf.jse.co.za/documents/2026/JSE/ISSE/MRPE/05062026.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. Any investment decision in relation to the company's shares should be based
on the full announcement.
MR PRICE GROUP ANNUAL RESULTS FOR THE 52 WEEKS ENDED 28 MARCH 2026
For the 52 weeks to 28 March 2026, Mr Price Group increased total revenue by 4.2% to R42.7bn and delivered normalised
diluted headline earnings per share growth of 8.0%, in a volatile trading environment.
The group's earnings in FY2026 were impacted by the expensing of all once-off transaction-related costs relating to the
acquisition of Pegasus Group Holding GmbH which trades as the retail business of NKD Group GmbH (NKD), which became
effective post year-end. Accordingly, normalised performance metrics have been presented to reflect the group's underlying
performance.
Basic, headline and diluted headline earnings per share increased by 8.0%, 7.7% and 8.0%, respectively, on a normalised basis.
Basic, headline and diluted headline earnings per share of 1 449.5 cents, 1 453.9 cents and 1 411.8 cents, increased by 2.3%,
2.1% and 2.4%, respectively, on a statutory basis.
The group's retail sales growth of 4.3% (FY2025: 7.8%) was higher than the Retailers' Liaison Committee (RLC) growth of 4.0%
(FY2025: 5.0%). The group expanded its annual gross profit (GP) margin by 70bps to 41.2%, despite the retail sector being
highly promotional. The group's disciplined execution of its value-driven model delivered positive operating leverage. Operating
profit grew by 4.3%, (normalised: +8.0%) exceeding R6bn for the first time, with its operating margin maintained at 14.2%
(normalised: up 50bps to 14.7%).
A final dividend of 592.8 cents per share was declared and a pay-out ratio of 63% was maintained.
Household disposable income showed some signs of recovery during 2025, however external research indicates that the
discretionary retail sector was not an immediate beneficiary of this improvement. As previously reported, the group was up
against a firm retail sales base in the second half of the financial year of +9.9%, which was predominantly driven by the
withdrawals from the introduction of the two-pot retirement system in South Africa.
Group CEO, Mark Blair, said: "I am very proud of how our team has responded to the volatility experienced this year. The agility
of our operating model and the strength of our value retailing DNA have enabled operating leverage in a challenging retail
environment. We are confident in our ability to perform across economic cycles while continuing to deliver value to our
customers."
Highlights for the period:
- Revenue increased to R42.7bn and retail sales grew ahead of the RLC
- Group GP margin increased 70bps
- Opened 196 new stores, supporting weighted average space growth of 3.6%
- Operating profit of R6.0bn, increased by 4.3% (+8.0% normalised)
- Operating margin maintained, up 50bps on a normalised basis
- Cash generated by operations of R8.8bn and a cash conversion ratio of 85.8%
- Normalised diluted headline earnings per share up 8.0%
Group results summary
Group retail sales of R41.1bn increased 4.3% and comparable store sales increased 1.1%. Other revenue decreased 1.9% to
R1.3bn due to lower interest rates impacting debtors' interest.
Group store sales increased 4.4% and online sales 4.9%. Customers continued to utilise the group's omni-channel shopping
offering with more than 55% of online orders being collected in store. Group unit sales increased 0.5% with retail selling price
(RSP) inflation of 3.8%.
The group opened 196 new stores across its 15 trading chains, increasing its total store footprint to 3 182. Trading space
increased by 3.6% on a weighted average basis. New store returns remain healthy, and with South African customers continuing
to favour in-store shopping, this channel remains a high-yielding avenue for capital deployment.
Cash sales constituted 89.4% of group retail sales and increased 4.4%. Credit sales grew by 3.5%, supported by an 11.0%
increase in new accounts approved (approval rate: 21.9%). Consumers remained cautious in their credit utilisation as debt
servicing levels remained high and in anticipation of an inflection in the interest rate, which has now materialised following the
25bps increase at end May 2026. The group will continue to manage its credit book conservatively.
The group's GP margin expanded 70bps to 41.2%, with all trading segments reporting gains. Despite a volatile consumer
environment and promotional sector, the merchandise GP margin increased to 42.0% and the Telecoms GP margin expanded
to 20.7%.
Operating profit increased by 4.3% to R6.0bn, and by 8.0% on a normalised basis. Overhead expenses were well contained, up
4.2% on a normalised basis (6.0% including NKD acquisition related costs), which included net weighted average space growth
of 3.6%. The group's expense to retail sales and other revenue ratio of 27.9% on a normalised basis was within its targeted
range, and remained so when including the NKD acquisition related costs. Operating margin on a normalised basis expanded
50bps to 14.7%, in the upper half of the group's medium-term targeted range, demonstrating the group's agile and value-focused
operating model.
Segmental performance
Retail sales growth Cont. to retail sales
FY2026 vs FY2025
Apparel segment 4.2% 79.6%
Home segment 3.8% 16.8%
Telecoms segment 10.3% 3.6%
Total group 4.3% 100%
The Apparel segment increased retail sales by 4.2% to R32.8bn, outperforming the RLC's growth of 3.4%, while comparable
retail sales increased 1.1%. Performance in H2 was against a high base, with retail sales and comparable sales growth of 9.8%
and 5.8% respectively in the prior year. Despite the softer topline growth for the sector resulting in a highly promotional
environment, the segment increased GP margin, driven by its three largest divisions. Its two newest divisions continued to
expand, with Power Fashion nearly doubling its store footprint since acquisition to 354 stores, while Studio 88 surpassed 1 000
stores. These two divisions collectively delivered well in excess of R1bn in operating profit, supporting the expansion of the
segment's operating margin by 70bps.
The Homeware segment grew retail sales by 3.8% (comparable store sales up 1.8%) to R6.9bn. The segment delivered
increased GP margin, up 50bps, supported by strong markdown management. Operating margin expanded further, in line with
the strategic imperative for the segment. Mr Price Home continues to hold a dominant level of market share (RLC) and retains
the highest brand equity in the sector (NiQ). Sheet Street has reported consistently improved comparable sales over the last
two years, and has delivered significantly improved profitability, supported by its space rationalisation programme. Yuppiechef
achieved double-digit sales growth and grew ahead of the market, gaining 10bps of market share (RLC). Its omni-channel
expansion continues to yield positive results, with its e-commerce platform now complemented by 25 stores.
The Telecoms segment revenue increased by double-digits once again, up 10.3% to R1.5bn. Mr Price Cellular and Powercell
collectively achieved a 20bps increase in market share (GfK). Standalone stores continued to generate strong returns, with an
additional 25 stores added during the period, taking the total to 86 which operate alongside 482 store-in-store concepts. Mr
Price Cellular was voted by MTN as the 'Retailer of the Year', reflecting the impact of successful network partnerships.
The Financial Services segment revenue increased 3.2% to R947m. Debtors' interest and fees increased 4.5% despite further
repo rate reductions of 75bps during the period. The credit cycle is anticipated to remain constrained, and the group will continue
to assess consumer affordability metrics through its strict feasibility criteria. This approach positions the group to have one of
the lowest net bad debt to book ratios in the sector and its provisions remain sufficient.
Supply chain agility was demonstrated through the period and sharp focus on efficient stock management was applied. As a
result, gross inventory was up 4.4% at the end of the period and stock freshness (0 - 3 months ageing) remained at the high
level of 82.6%.
The group deployed capital expenditure of R1.1bn which was predominantly allocated towards new stores, which continue to
generate strong returns, as well as to expansions and revamps. The remaining capex was primarily allocated to strategic
technology projects and the expansion of the Gosforth Park distribution centre in Gauteng. The group remains highly cash
generative and delivered a cash conversion ratio of 85.8%, ahead of the medium-term target.
Outlook
For most of 2025, global geopolitical tensions remained elevated, driven by ongoing regional conflicts and fragile diplomatic
relations, aggravated by the US initiated trade-war. Despite this, inflation remained at manageable levels and a global interest
rate cutting cycle provided some consumer relief. South Africa navigated this period in a moderately more positive direction.
After a prolonged period of subdued economic performance, the country's GDP growth improved to 1.1%. At the end of 2025,
real wage and disposable income growth returned to positive territory and the outlook for 2026 appeared more positive for
consumers at the beginning of the year.
However, the escalation of the US-Iran conflict in late February 2026 heightened tensions and placed global oil supply under
pressure, driving a 38.3% increase in the oil price in Q1 of 2026 (compared to Q4 2025). Renewed inflationary pressures on
food and fuel and a reversal in the interest rate cutting cycle have compromised the early signs of consumer recovery. Increased
pressure on global supply chains which directly impacts shipping rates and elevated oil prices will have secondary effects on
business input costs. These pressures could persist through the remainder of the year and into 2027 if a peace agreement is
not reached imminently.
To date, the group has been largely unaffected from a business cost perspective and its supply chain planning has protected it
from short-term price increases and surcharges. Its on-time and in-full merchandise deliveries have not been impacted, ensuring
that winter product arrivals occurred as planned. The duration of the conflict will determine the degree of materiality on business
operations and the consumer.
Value retail is anticipated to demonstrate resilience as consumers navigate a potentially prolonged period of financial pressure.
The group is confident that its 16 trading chains are well positioned to provide customers with excellent value. Its differentiated-
fashion merchandise has ensured that Mr Price Apparel remains the most shopped apparel retailer in South Africa (MAPS) and
Mr Price Home the most loved homeware retailer (NiQ). The Mr Price brand strength, associated with excellent value, was
ranked 7th across South Africa's top 100 brands (Brand Finance). These accolades become even more important during times
when consumers are forced to seek increased value for their spend.
Focus for FY2027 will be to continue the consistent earnings growth achieved by the group over the last three years. Its value-
focused business model has enabled operating leverage despite sales growth constraints. Navigating a complex operating
environment in South Africa with disciplined execution will be the top priority for management.
In South Africa, capital expenditure for FY2027 is forecast to be R1.1bn, with approximately 180 new stores, store revamps,
supply chain and technology investment. Given the introduction of structural debt, focus on balance sheet and treasury
management will be prioritised. In Europe, NKD's capital expenditure is forecast to be €24m and incorporates approximately
150 new stores.
In both markets, post year-end April trade was challenging as consumer confidence deteriorated in response to the unexpected
inflation increase due to the US-Iran conflict. Trade improved into May and early June, and the group is confident that its value
chain agility enables it to respond positively to changing conditions. The Q1 FY2027 voluntary sales update will be released in
late July 2026.
Blair said, "There is an underlying optimism about South Africa's long-term prospects, and we remain positive about our
business's ability to continue performing strongly. However, the conflict in Iran has brought uncertainty to the short-term and we
are focused on ensuring that we manage the impacts and continue to deliver value to our loyal customers."
NKD
Management are pleased to have officially welcomed NKD to the group on 31 March 2026. Clear areas of focus have been
identified with the NKD management team who are committed to achieving the guided forecasts communicated to investors at
the presentation on 17 March 2026.
Shareholders are invited to attend a live webcast of the annual results presentation at 09h00 (SAST) on 5 June 2026. Webcast
link: https://www.corpcam.com/MrPrice05062026
ENDS
The reviewed condensed consolidated financial statements, for which the directors take full responsibility, were approved by the
directors on 04 June 2026 and have been reviewed by Deloitte & Touche, who issued an unmodified review conclusion report
thereon. The results have been prepared under the supervision of Mr P Nundkumar, CA(SA), Chief Financial Officer.
This short form announcement has not been audited or reviewed by the company's auditors.
FINAL CASH DIVIDEND DECLARATION
Notice is hereby given that a final gross cash dividend of 592.8 cents per share was declared for the 52 weeks ended 28 March
2026, a 0.1% decrease against the prior year. The group maintained its historic 63% dividend payout ratio of headline earnings.
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 474.24 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 30 June 2026
Date trading commences 'ex' the dividend Wednesday 01 July 2026
Record date Friday 03 July 2026
Payment date Monday 06 July 2026
Shareholders may not dematerialise or rematerialise their share certificates between Wednesday, 01 July 2026 and Friday, 03
July 2026, 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 04 June 2026.
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
05 June 2026
JSE Equity Sponsor and Corporate Broker
Investec Bank Limited
Forward looking statements
This short-form announcement is the responsibility of the directors and contains forward-looking statements that relate to the
group's future operations and performance. Such statements have not been reviewed or reported on by the Company's external
auditors and are not intended to be interpreted as guarantees of future performance, achievements, financial or other results.
They rely on future circumstances, some of which are beyond management's control, and the outcomes implied by these
statements could potentially be materially different from future results. No assurance can be given that forward-looking
statements will be accurate; thus, undue reliance should not be placed on such statements.
Date: 05-06-2026 07:05:00
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