Full Year 2025 Mr Price Group Ltd Earnings Call Transcript
Key Points
- Mr Price Group Ltd (MRPLY) reported a strong start to the new financial year with April and May sales growth of 11.3% and 12% respectively.
- The company achieved a 12.7% increase in the final dividend to shareholders, reflecting strong financial performance.
- Mr Price Group Ltd (MRPLY) opened 184 new stores, contributing to a weighted average space growth of 4.3% and demonstrating expansion efforts.
- The company reported a 9.9% increase in gross profit to ZAR16 billion, with a GP margin growth of 80 basis points.
- The Apparel segment gained market share of 50 basis points, marking two consecutive years of market share gains.
- The South African consumer environment remains uncertain with low GDP growth and potential VAT increases impacting consumer confidence.
- The company faces challenges from higher taxes on competitors like Shein, which could affect market dynamics.
- Despite positive sales growth, the consumer confidence remains negative, albeit trending in the right direction.
- The company noted a constrained consumer environment in the first half of the financial year, impacting initial results.
- Higher occupancy costs due to new space growth and electricity increases contributed to a 10% growth in expenses.
Good morning, everybody. I'm Mark Blair, the CEO of the Mr Price Group. And on my right is Praneel Nundkumar, the CFO of the Mr Price Group. And we're here to talk about the F 2025 annual results and then obviously, about strategy and outlook. If you look at the current operating environment, I'm sure we're all very familiar with this.
There's a lot of this that's been in the news lately. But if you just, first of all, think about what the global situation is, I think that graph on the bottom left-hand side really tells it all lots of spikes, lots of ups and downs and therefore, lots of volatility, but it's the steepness of that shape of the graph on the right-hand side that tells it all.
But certainly, with the US trade tariffs, that threatened global forecast, disrupted trade relations, potentially disrupted supply chains, and immediately put the threat of higher inflation into the market. There's still some ongoing spats, a bit of tip and tap sometimes, and we'll have to see where it all settles down. But
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