Mr Price Group (MRP) H1 2026 earnings summary

Executive summary

• Revenue grew 5.4% to R18.6bn for the 26 weeks ending 27 September 2025, with retail sales up 5.5% and comparable store sales up 2.1%.

• Gross profit increased 6.3% to R7.1bn, with gross margin up 30bps to 40.0% despite a highly promotional environment.

• Operating profit rose 5.7% to R2.1bn, and HEPS increased 6.5% to 513.0c; dividend per share up 6.5% to 323.2c.

• Cash balance reached R3.0bn, up 38% year-over-year, with zero long-term debt.

• The group maintained its dividend policy and disciplined cost management.

Financial highlights

• Profit before tax up 7.7% to R1.8bn; profit after tax up 7.3% to R1.33bn.

• EBITDA increased 5.5% to R3.7bn; cash conversion ratio at 81.8%.

• Operating margin expanded by 10bps to 11.5%, reflecting efficient cost control.

• Capital expenditure for the period was R574m, with an annual forecast of R1.5bn.

• Net working capital inflow of R372m supported strong cash generation.

Outlook and guidance

• Management expects to land within medium-term target ranges for expenses (27.5%-28.5% of RSOI) and GP margin (40%-42% for group/apparel, 41%-43% for homeware).

• Economic conditions are improving: stable electricity, better port infrastructure, lower inflation (~3%), and declining interest rates.

• Retail sales post-period up 3.1%-3.3% against a high base; momentum improving into November.

• No aggressive credit growth planned; focus remains on consumer health and affordability.

• The group is investing in omni-channel platforms and technology evolution.