Mr Price Group delivers $236.6 million profit on stronger margins in 2026

MR Price Group Limited, a leading cash-based, omni-channel fashion retailer listed on the Johannesburg Stock Exchange (JSE), has posted a modest rise in profit for the 52 weeks ended March 28, 2026, with earnings increasing by 1.61% to R3.85 billion ($236.59 million), complementing a 4.2% gain in revenue to R42.65 billion ($2.61 billion) as the retailer leveraged margin expansion and disciplined cost control in a volatile trading environment.

The South African value retailer led by Mark Blair reported an 8% increase in normalised diluted headline earnings per share, reflecting improved operational efficiency despite acquisition-related costs linked to its NKD Group transaction.

Revenue growth underpinned by value retail strength

Group retail sales increased 4.3% to R41.1 billion ($2.51 billion), outperforming broader retail benchmarks in a mixed consumer environment. Comparable store sales rose 1.1%, while total unit sales edged up 0.5%, reflecting cautious consumer demand offset by price inflation of 3.8%.

The group’s profit expanded marginally to R3.85 billion ($236.59 million) from R3.79 billion ($232.82 million) by 1.61%, supported by stronger merchandise performance and disciplined markdown management across its apparel, homeware, and telecom segments.

Operating profit rose 4.3% to cross the R6 billion ($366.35 million) threshold for the first time. On a normalised basis, operating profit increased 8 %, with margins expanding to 14.7%.

Acquisition impact and adjusted performance view

Earnings for the period were affected by once-off transaction costs linked to the acquisition of NKD Group GmbH, which became effective post year-end. As a result, the group presented normalised metrics to better reflect underlying performance, with earnings per share rising between 7.7% and 8 % depending on the measure used.

Strong cash generation and capital discipline

The group generated R8.8 billion ($537.68 million) in cash from operations, translating to an 85.8% cash conversion ratio, reflecting strong working capital discipline and inventory management. 

Capital expenditure totalled R1.1 billion ($67.21 million), directed mainly toward new store openings, refurbishments, technology upgrades, and distribution capacity expansion.

During the year, Mr Price opened 196 new stores across its multi-brand portfolio, lifting its total footprint to 3,182 stores and reinforcing its omnichannel retail model.

Segment performance driven by apparel and telecom growth

The Apparel division remained the largest contributor, growing retail sales by 4.2% to R32.8 billion ($2 billion), outperforming industry benchmarks. The segment expanded margins despite a highly promotional environment, supported by strong contributions from its major trading chains.

The Homeware segment posted 3.8% sales growth to R6.9 billion ($421.61 million), with margin expansion driven by improved markdown control and continued brand strength across home-focused retail formats. The Telecoms segment delivered another double-digit performance, with revenue rising 10.3% to R1.5 billion ($91.66 million), supported by expanding store networks and market share gains across mobile offerings. Financial Services revenue increased 3.2% to R947 million ($57.86 million), with cautious credit growth reflecting ongoing consumer affordability constraints.

Dividend maintained despite slight decline

The board declared a final cash dividend of R5.93 per share, maintaining a 63% payout ratio, despite a marginal 0.1% year-on-year decline in dividend per share. The dividend reflects the group’s continued commitment to shareholder returns alongside reinvestment into store expansion and digital infrastructure.

While South Africa’s economic recovery showed early signs of improvement in 2025, renewed global energy and supply chain disruptions have introduced fresh uncertainty. The company expects continued investment in expansion, with approximately 180 new stores planned for FY2027, alongside further technology and supply chain upgrades.