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Trading statement for the 26 weeks ended 26 September 2020
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")
TRADING STATEMENT FOR THE 26 WEEKS ENDED 26 SEPTEMBER 2020
The group is currently finalising its interim financial results
for the 26 weeks ended 26 September 2020. These results will be
announced on the Stock Exchange News Service on or about Thursday,
26 November 2020.
Following the trading statement published on 20 August 2020,
shareholders are further advised that headline earnings per share
is likely to be between 23% and 28% lower than that reported for
the previous corresponding reporting period, as reflected in the
table below.
Earnings impact
The closure of all the group’s South African stores during the
nation-wide lockdown between 27 March 2020 and 30 April 2020, and
the subsequent trade restrictions due to COVID-19, has had a
material impact on the group’s earnings. During the month of April
2020, the group estimates that it lost approximately R1.8bn in
sales. Despite stores being permitted to trade from May 2020, the
group was further negatively impacted as its full assortment of
merchandise was not permitted to be sold until 1 June 2020.
As a result, the group advises that it expects the interim
financial results for the 26 weeks ended 26 September 2020 to fall
within the following ranges:
Reported interim Expected interim
28/09/2019 26/09/2020
cents cents %
Basic earnings per share 443.6 275.0 to -33% to
297.2 -38%
Basic headline earnings 319.1 to -23% to
per share 443.2 341.3 -28%
Diluted earnings per share 436.3 270.5 to -33% to
292.3 -38%
Diluted headline earnings 435.9 313.9 to -23% to
per share 335.6 -28%
Following a detailed review, impairments of R153.4m were
recognised, relating to IT assets and right-of-use-assets (store
leases). These impairment charges were included in basic earnings
per share but are added back for the calculation of headline
earnings per share.
The current economic conditions have required an increase in the
impairment of the group debtors’ book to 15.2%. Cash continues to
be the favoured tender type, accounting for 86.0% of total sales.
The group achieved its target of double-digit declines in inventory
on hand in H1 FY21, which has been adequately provided for.
Interim results presentation
A live webcast of the interim results presentation is scheduled
for 09:00 am on or about 26 November 2020. This can be accessed
through the following link:
https://www.corpcam.com/MrPrice26112020
The estimate financial information on which this trading statement
is based has not been reviewed and reported on by the company’s
external auditors.
Durban
4 November 2020
Sponsor:
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 04-11-2020 05:15:00
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