South Africa’s retailer Mr Price announced today that its Financial Services segment recorded a 6.2% in revenue for the year to end-April 2022.
Mr Price said the Financial Services segment revenue increased 6.2% to R697 million.
The retailer added that debtors’ interest and fees increased 5.6%, and reported double-digit growth in H2 due to a higher average debtors’ book and a 75bps increase in the repo rate.
“The group’s strict credit granting criteria and strong collections and recovery performances positively impacted the portfolio, reflected by the net bad debt to book percentage decreasing to 6.0%, adequately covered by the impairment provision of 9.1%.”
Mr Price said insurance premium income grew 6.4%.
Mr Price added that total group revenue increased 23.0% to R28.1 billion and on a 52-week comparable basis.
The group’s balance sheet is strong with cash of R4.6 billionn available and remains free
of financing debt.
Disciplined investment decisions by management will continue to be made in order to create sustainable, long-term shareholder value whilst balancing the group’s market leading return metrics, said the company.
Net asset value per share increased 11.6% to 4 686 cents.
Group CEO Mark Blair, said, “We have faced two tough years in a row and with all the headwinds it looks like FY2023 will be no different. We will navigate the short term as we always have, with good execution, agility, and confidence. We have good momentum-our growth plan is coming together, and we are excited to welcome the Studio 88 team once we have regulatory approval. This business and its people are resilient, and I am extremely proud of the way in which everyone has responded, which is testament to our mantra of ordinary people doing extraordinary things.”
