Today, the South African retailer Mr Price reported that its Financial Services business saw a 2.7% increase in revenues to R337 million in the 26 weeks ended 2 October 2021.
The retailer said the Financial Services business debtors’ interest and fees were adversely affected by significantly lower repo rates experienced during the full year 2022 period relative to the staggered impact in the full year 2021.
“Collections continue to improve against a weak base and have additionally been aided by the successful introduction of alternate collection methods,” Mr Price informed investors.
“The quality of the debtors’ book continues to improve, reflected by lower net bad debt and the bad debt provision standing at 10.6% of the debtors’ book, a decrease from the full year 2021 period.“
Mr Price also disclosed that the Insurance premium income grew 10.6% as sales volumes recovered towards pre-COVID-19 levels.
Mr Price’s Financial Services and Telecoms Business were previously presented as one segment (Financial Services and Cellular).
However, the chief decision-makers have separated into two segments for a more meaningful breakdown as the Telecoms business grows.
MR Price Group’s headline earnings per share (HEPS) increased 34.4% to 448.3 cents. HEPS is South Africa’s main profit gauge.
The total group revenue rose 35.2% to R12.4 billion, with retail sales increasing 37.8% to R11.9 billion, a strong performance considering the external disruptions during the full year 2022.
“These results were additionally supported by the inclusion of recently acquired Power Fashion, effective 1 April 2021, and Yuppiechef effective 1 August 2021. Excluding acquisitions, total revenue and retail sales increased 25.8% and 27.8% respectively.”