Mr Price Group (MRP) Investor Day 2024 summary

Strategic vision, culture, and business model

• Aims to be Africa's most valuable retailer, driven by strategic pillars such as stakeholder engagement, growth, customer obsession, diversified offerings, operational excellence, and sustainability.

• Emphasizes a unique, people-first culture rooted in founder values, with strong internal succession planning and leadership development.

• Operates a cash-based, omni-channel model focused on everyday low prices, defensive low-cost structure, and disciplined capital allocation.

• Maintains strong brand equity and leading market share in fashion-value retail, with a diversified portfolio across apparel, homeware, and financial services.

• Integration of acquisitions prioritizes performance, selective synergies, and gradual alignment to group culture and systems.

Business transformation, growth strategy, and market positioning

• Retail sales grew from ZAR 21.7bn to ZAR 36.6bn over five years, with store count rising from 1,378 to 2,900 and divisions expanding from 6 to 9.

• Strategic acquisitions (Power Fashion, Yuppiechef, Studio 88) and organic launches (Kids, Cellular) have added R10.7bn in sales since 2020 and broadened the customer base.

• Store footprint to expand to ~3,700 by 2029, with 150–175 new stores per year and a focus on high-return locations.

• Omni-channel strategy leverages digital engagement, with online sales doubling since 2020, but physical retail remains the primary focus.

• Maintains low credit exposure (11.1% of sales), supporting strong cash generation and resilience to credit cycles.

Financial performance, guidance, and operational efficiency

• Achieved 38-year HEPS CAGR of 18.4%, dividend CAGR of 19.6%, and 5-year retail sales CAGR of 11.9%; five-year average operating margin at 16.3%.

• FY2024 retail sales reached R36.6bn, with 2,900 stores and ~32,000 associates.

• Medium-term targets: ROE 24–26%, operating margin 13–15%, gross profit margin 40–42%, and stock turn >4.0x.

• Cash generation remains strong, with ZAR 21bn generated after working capital and leases, and a cash conversion ratio of 86.9%.

• CapEx of ZAR 5.5bn planned over four years, mainly for store growth, technology, and logistics upgrades.