JSE-listed retailer Mr Price is on the brink of a significant financial milestone as its Financial Services Division approaches R1 billion in revenue.
The achievement emphasises the division’s rapid growth and key role within the company, highlighting Mr Price’s expanding footprint in the financial sector.
Mr Price announced today that its Financial Services segment revenue had risen by 4.8%, reaching R869 million. This growth is driven by a 12.1% increase in debtors’ interest and fees, attributed to a higher average debtors’ book and a 50 basis point increase in the repo rate over the period.
Despite challenging economic conditions, the net bad debt to book percentage remains low compared to industry standards, and the group is adequately provisioned.
Today, Mr Price released its full-year 2024 year-end results for the 52 weeks ending March 30, 2024.
The company reported a 15.5% increase in revenue, reaching R37.9 billion. This performance includes contributions from the acquired Studio 88 Group (S88), effective from October 4, 2022.
Excluding S88, revenue grew by 5.8% to R30.3 billion.
According to the Retailers’ Liaison Committee (RLC), Mr Price increased its annual market share by 30 basis points, and its operating profit exceeded R5 billion for the first time
Basic and headline earnings per share, which is South Africa’s true profit gauge, were 1,276.2 cents and 1,286.2 cents, up 5.4% and 6.7%, respectively.
Diluted headline earnings per share grew by 6.3% to 1,252.6 cents. Despite a challenging retail environment, the group delivered a strong second-half performance, with diluted headline earnings per share growing by 17.4%. This was driven by significantly improved sales momentum, a 160 basis point expansion in the gross profit margin to 40.6%, and a market share gain of 90 basis points.
A final dividend of 526.8 cents per share was declared, up 17.8%, maintaining a payout ratio of 63%.
“Over the last year, we have had a great deal to contend with. Despite the challenges our team has remained focused on execution, while remaining agile in responding to the volatility of the trading environment, which has
reflected in the performance of the second half,” said Mr Price’s Group CEO, Mark Blair.
“By focusing on delivering value to our customers, the group has strengthened its market position, as evidenced by gaining market share for 7 consecutive months at better margins.”