Mr Price Group (MRP) H2 2026 earnings summary

Executive summary

• Achieved consistent earnings growth for the fifth consecutive reporting period, with revenue of R42.7bn (up 4.2%) and EBITDA of R9.6bn, despite macroeconomic volatility and challenging consumer environments.

• Completed the acquisition of NKD, expanding into the European market and increasing diversification.

• Maintained disciplined capital allocation, cost control, and a strong focus on profitable market share growth, with a 63% dividend payout ratio and strong cash generation.

• Continued investment in technology, supply chain, and store expansion to support long-term growth.

• Navigated macroeconomic disruptions, including global supply chain shocks and local consumer headwinds.

Financial highlights

• Revenue increased 4.2% to ZAR 42.7 billion for the year ended March 2026.

• Normalized EBITDA rose 7.4% to ZAR 9.6 billion; operating profit up 8% to ZAR 6.2 billion.

• Diluted HEPS grew 8% (normalized), headline earnings up 7.7% on a normalized basis.

• Gross profit margin improved by 70 basis points to 41.2%, marking the third consecutive year of gains.

• Cash and cash equivalents rose to ZAR 11.7 billion, driven by new interest-bearing loans and strong cash generation.

Outlook and guidance

• Focus remains on the South African business and delivery of the NKD business case; no plans to enter a third territory or further M&A in the near term.

• CapEx for FY 2027 expected at ZAR 1.1 billion in South Africa and EUR 24 million in Europe, with 180 new stores planned locally and 150 in Europe.

• Weighted average space growth projected at 3%-4%; net debt-to-EBITDA expected at 1.4x, below medium-term target.

• Management remains cautious entering FY 2027 due to macroeconomic uncertainties but optimistic about medium- to long-term prospects.

• Emphasis on scaling supply chain, integrating acquisitions, and optimising capital structure.