Mr Price’s interim performance exceeds pre-Covid-19 levels despite ongoing challenges

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Mr Price store front
Mr Price store front
Mr Price Group

Value retailer Mr Price has seen its sales and earnings growth exceeding pre-Covid-19 levels in the last 26 weeks, despite the third wave of the pandemic, load shedding, the July unrest and global supply chain disruptions.

On Thursday, the group released its interim results for the 26 weeks ended 2 October 2021. The results show that its retail sales grew by 37.8% in the period, and increased by 17.4% when compared to 2020. It’s cash sales grow by 38.2%, online sales more than doubled compared to 2020, with a retail sales contribution that grew by 2.9%.

Mr Price’s diluted headline earnings per share increased by 33.5% and the group declared an interim gross cash dividend of 282.4 cents per share, an increase of 34.4% from the 2020 interim.

Its apparel division increased its retail sales and other income (RSOI) by 42.6% to R8.5 billion, while homeware’s RSOI grew by 27.3% to R3 billion.

The retailer opened 48 new stores during the period and 96 of its 111 stores that were looted during the unrest that took place in KwaZulu-Natal and Gauteng, will reopen by the end of November.

The last 15 stores are likely to reopen next year, as a result of substantial damage. The unrest resulted in a retail sales loss of about R320 million and the retailer has since received R235 million in interim insurance payouts from the South African Special Risks Insurance Association (Sasria) and a R92 million business interruption payout.

"The group has proven its operational versatility over the last 18 months. Despite the challenges … it entered the high summer season (October to December 2021) with fresh and available stock, made possible by strategic timing buffers built into ordering processes and its high volume of units sourced in South Africa," it said.

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