Mr Price's share price rallies after strong profit recovery

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Mr Price store front .(Supplied - Mr Price Group)
Mr Price store front .(Supplied - Mr Price Group)
Mr Price Group

Thanks to a strong recovery in recent months, Mr Price managed to increase its annual headline earnings per share by almost 2% - despite its stores being closed for a month during hard lockdown a year ago, which cost the group an estimated R1.8 billion in lost sales.  

Headline profit in the second half of its financial year grew by 21%, with sales rising almost 9% in that six-month period. Both its homeware and cellphone sales achieved double-digit growth.

Total revenue from continuing operations fell by 2.9% to R22.3 billion with retail sales down 2.4%. Credit sales declined almost 15%, while cash sales now represent 86% of all sales. Online sales grew by 64%, but still only contributes 2% of group sales.

The company has no debt, with R4.9 billion in cash on hand. It recently announced the acquisitions of Power Fashion and Yuppiechef, with the latter deal still subject to Competition Commission approval.

Almost 40% of Mr Price merchandise - some 78 million units - are now sourced from South Africa.

The company declared an annual dividend of 672.8 cents per share. Last year, no dividend was declared.

Mr Price's share price jumped almost 7% in opening trading on Thursday, to trade at R212.99.

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