Trading update to 25 August 2018
Mr Price Group Limited
Registration number 1933/004418/06
Incorporated in the Republic of South Africa
ISIN: ZAE 000026951
JSE share code: MRP
("the company" or "the group")
TRADING UPDATE TO 25 August 2018
During the first four months (18 weeks to 4 August 2018) of the
financial year ending 30 March 2019, the group recorded growth in
retail sales and other income of 7.4% to R7.4bn over the
corresponding period in the prior year (“Corresponding Period”).
Total retail sales, including sales to franchisees, of R6.9bn were
6.5% higher than the Corresponding Period, while growths in
corporate owned stores were as follows:
Retail Comparable RSP
Sales Store Sales Units Inflation
Mrp 6.4% 3.6% 2.8% 4.5%
mrpSport 5.8% 0.7% 3.1% 3.4%
Miladys 9.1% 8.9% 3.9% 5.8%
6.6% 3.9% 2.8% 4.6%
mrpHome 7.7% 5.9% 3.6% 4.9%
Sheet Street 3.8% 1.6% 6.4% -1.6%
6.5% 4.5% 4.5% 2.8%
Group Retail Sales 6.6% 4.0% 3.2% 4.2%
Comparable store sales growth and unit growth was achieved in all
Online sales continued to grow strongly by 28.1% to R83.2m. The
MRP Apparel online channel achieved sales growth of 37.6% MRP Home
19.5% and MRP Sport 31.3%.
South African sales increased 6.4% to R6.4bn, exceeding the
combined sales growth of 3.5% for Type D and Type E Retailers as
reported by Stats SA for April to June, the period for which market
information is available.
Sales in non-South African corporate owned stores grew 9.1% to
R520.8m, aided by the inclusion of the previously franchised Kenyan
stores from late May 2018. Excluding Kenya, corporate owned store
growth was 1.8%. Sales to franchisees decreased 30.9%, however
after excluding Kenya in both periods, sales were up 11.6%.
Group cash sales increased 7.0%, constituting 82.9% (LY: 82.6%) of
total sales and credit sales reflected growth of 4.1%.
New store openings and expansions resulted in weighted average
trading space increasing 3.1%, while after store closures and
reductions, net weighted average trading space was up 1.8%.
Retail selling price inflation, including the impact of product
mix changes and lower markdowns, was 4.2%.
Other income grew by 23.5%, to R459.4m. Debtors’ interest and fees
grew 6.9% to R160.1m and Insurance revenue of R85.5m increased
6.9%. Cellular and Mobile revenue increased 56.7% to R196.5m mainly
as a result of the ongoing rollout of in-store cellular kiosks.
Other sundry income increased 2.8% to R17.3m.
Total retail sales for the three-week period from 5 to 25 August
2018, not included in the analysis above, were up 7.4%.
The retail environment is expected to remain highly competitive
until more robust economic growth is attained in South Africa. In
addition, international trade wars have weighed down on emerging
markets. Navigating the impact on consumers of a stagnant economy
and a weak ZAR/USD exchange rate is a top priority and we are
confident that our fashion, everyday low price business model is
well positioned to offer great value to consumers under these
The above-mentioned figures do not constitute an earnings forecast
and have not been reviewed and reported on by the company's
30 August 2018
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
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