Mr Price Group (MRP) H2 2026 earnings summary

Executive summary

• Achieved consistent earnings growth for the fifth consecutive period, with revenue rising 4.2% to R42.7bn and normalised diluted HEPS up 8.0%, despite macroeconomic volatility.

• Operating profit exceeded R6bn for the first time, up 8.0% on a normalised basis, and EBITDA increased to R9.6bn.

• Completed the acquisition of NKD, expanding into Europe, and increased shareholding in Studio 88 to 100%.

• Maintained disciplined capital allocation, strong cash generation with cash and cash equivalents rising to R11.7bn, and a 63% dividend payout ratio.

• Navigated global supply chain shocks, inflation, and subdued consumer confidence through cost control and strategic investments.

Financial highlights

• Revenue increased 4.2% to R42.7bn for the year ended March 2026; retail sales grew 4.3% to R41.1bn.

• Normalised EBITDA rose 7.4% to R9.6bn; operating profit up 8% to R6.2bn.

• Diluted HEPS grew 8% to 1,489.3c; headline earnings up 7.7% on a normalised basis.

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

• Cash conversion ratio at 85.8%, with net profit for the period at R3.85bn.

Outlook and guidance

• Focus remains on South Africa and delivery of the NKD business case; no plans for further M&A or new market entry.

• FY2027 capex forecast at R1.1bn in South Africa and €24m in Europe, with 180 new stores locally and 150 in Europe.

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

• Management remains cautious for FY2027 due to global volatility, oil prices, and subdued consumer confidence.