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MR PRICE GROUP LIMITED - Trading statement for the six-months ended 2 October 2021

Release Date: 03/11/2021 07:05
Code(s): MRP     PDF:  
Wrap Text
Trading statement for the six-months ended 2 October 2021

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
("group" or "company")


The group is presently finalising its interim financial results
for the six months ended 2 October 2021 (the Period). These will
be announced on the JSE Stock Exchange News Service (SENS) on or
about Thursday 25 November 2021.

Shareholders are advised that headline earnings per share (HEPS)
is likely to be between 30% and 40% higher than the period 4 April
to 26 September 2020 (Corresponding Period) and normalised HEPS
between 40% and 50% higher (as detailed below), as reflected in
the table below.

The group’s anticipated increase in HEPS for the Period is
attributed to an improved retail trading performance against the
Corresponding Period. In this affected base, all the group’s South
African stores were closed during the nation-wide lockdown between
27 March and 30 April 2020, with additional subsequent trading
restrictions enforced due to the COVID-19 pandemic. HEPS declined
24.8% in this Corresponding Period.

As a result, the group advises that it expects the interim results
for the Period to fall within the following ranges:

                             Reported interim   Expected interim
                                26/09/2020         02/10/2021

                                  cents          cents         %
Basic earnings per share                        421.2 to    45% to
                                  290.5         450.3       55%        
Headline earnings per                           433.6 to    30% to
share                             333.5         466.9       40%
Normalised headline                             466.9 to    40% to
earnings per share                333.5         500.3       50%

NORMALISED HEPS (HEPS excluding incurred losses for stock, cash
and assets)
As previously reported on 14 July 2021 and 21 July 2021, the civil
unrest throughout the province of KwaZulu Natal and parts of
Gauteng in July 2021, resulted in the looting of 111 (approximately
7%) of the group’s 1 592 stores. As a result, the group’s earnings
performance as outlined above includes asset write-offs incurred
for stock, cash and assets.

Excluding these asset write-offs incurred because of this event,
normalised HEPS is expected to be between 40% and 50% higher than
the Corresponding Period.

An interim insurance payment of R181 million (including VAT) was
made by SASRIA post the Period. This has resulted in a timing
difference between asset write-offs and the receipt of insurance

The group continues to carry the costs of the looted stores since
the looting despite not being able to trade and generate income.
The associated business interruption losses continue to be
assessed and the group anticipates further insurance payments to
be received in H2 FY2022 and H1 FY2023.


A live webcast of the interim results presentation is scheduled
for 09:00 am on Thursday, 25 November 2021. This can be accessed
through the following

The normalised HEPS is considered to be pro forma financial
information in terms of the JSE Listings Requirements. This
information is the responsibility of the group’s directors, has
been prepared for illustrative purposes only and may not fairly
present the group’s financial position, changes in equity, cash
flows or results of operations.

The forecast financial information on which this trading statement
is based has not been reviewed and reported on by the company’s
external auditors.

3 November 2021

JSE Equity Sponsor and Corporate Broker
Investec Bank Limited

Date: 03-11-2021 07:05:00
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