Retailer Mr Price Profit Rose 20.7% Boosted by Strong Online Sales

Mr Price also benefitted from good growth recorded by its cellular and financial services division.

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William Potter Royalty-free stock photo ID: 1024344034 Online shopping / ecommerce and delivery service concept :
William Potter Royalty-free stock photo ID: 1024344034Online shopping / ecommerce and delivery service concept :

JSE-listed retailer Mr Price said its full-year headline earnings per share (HEPS) rose 20.7% to 1100.1 cents per share on stronger online sale.

HEPS is South Africa’s main profit gauge.

The South African-based retailer reported that total revenue increased 8% to R21.3 billion with retail sales rising by 7.6% to R20 billion for the year to end-March 2018.

The retailer said revenue growth were led by online sales, which rose 11.5%, with MRP Apparel, South Africa’s no.1 ranked fashion retailer on several social media platforms, recording growth of 31.9%.

The company added that local store sales were up 8.3% while non South African store sales increased by 3.8%.

It added that Apparel division’s operating profit rose 36% to R2.7 billion. Sales in MRP Apparel grew 11.4% versus 8.9% in the previous year to R12.1 billion.

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Mr Price also benefitted from good growth recorded by its cellular and financial services division.

The retailer said MRP Money saw a 7.2% rise in revenue to R1.1 billion.

It added that increases in debtors’ interest and fees of 6.5%, insurance revenue of 14.2%, and cellular revenue of 4.3% were achieved.

“The division acquired the minority interest in the MRP Mobile MVNO on 2 January 2018 and successfully rolled out cellular kiosks to 103 stores during the year. Cellular revenue growth in second quarter was 14%,” the company informed investors.

In 2014, Mr Price launched its MVNO (mobile virtual network operator), which runs on a Cell C’s network. It offers customers cellular products and has diversified into financial services.

Its services are becoming an alternative to your traditional mobile phone companies, such as Vodacom, MTN, and Cell C, etc. They are also an alternative to traditional banks, such FNB, ABSA, Standard Bank, Nedbank and Capitec.

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