Get more Mail & Guardian
Subscribe or Login

Mr Price profit up by 16%

Fashion and home goods retailer Mr Price said profit per share for the year to end-March rose 16% and it expected to gain market share as shoppers opt for its low-cost products.

However, the company forecast challenging trading conditions ahead as the first recession in 17 years hits consumer confidence in Africa’s biggest economy.

The company said diluted headline earnings per share for the year rose 16% to 244,6 cents. Retail sales rose 19,3% to R8,6-billion.

”Not a bad result at all … I think they’re definitely taking some market share at this point in time,” said Abri Du Plessis, chief investment officer at Gryphon Asset Management.

”The one negative is that expenses are up quite a bit … [but] they’re probably positioning themselves aggressively in the market to take some more market share where the other guys are scaling down.”

Mr Price shares had gained 3,4% to R27,40 by 7.53am GMT, outpacing a firmer JSE All-share index.

The group said it had opened 58 new stores during the year, resulting in the creation of 400 full-time jobs. Sales at its core clothing unit climbed 24% to R4,5-billion.

Local retailers have been struggling as consumers in Africa’s biggest economy rein in spending to cope with relatively high interest rates and inflation.

South Africa slid into its first recession in 17 years in the first three months of 2009 and the Treasury said on Tuesday it expected the economy to shrink again in the second quarter.

But retailers like Mr Price that target the lower end of the market are faring better than more upscale rivals such as Truworths or Foschini, as hard-pressed customers opt for cheaper products.

The group said it expected to capture further market share in this financial year. It declared a final dividend of 92,8 cents. – Reuters

Subscribe for R500/year

Thanks for enjoying the Mail & Guardian, we’re proud of our 36 year history, throughout which we have delivered to readers the most important, unbiased stories in South Africa. Good journalism costs, though, and right from our very first edition we’ve relied on reader subscriptions to protect our independence.

Digital subscribers get access to all of our award-winning journalism, including premium features, as well as exclusive events, newsletters, webinars and the cryptic crossword. Click here to find out how to join them and get a 57% discount in your first year.

Related stories


If you’re reading this, you clearly have great taste

If you haven’t already, you can subscribe to the Mail & Guardian for less than the cost of a cup of coffee a week, and get more great reads.

Already a subscriber? Sign in here


Subscribers only

Basic web lessons for South Africa: Government hacks point to...

Recent cyberattacks at the department of justice and the space agency highlight the extent of our naïveté

If the inflation-driving supply strain in the US lasts, it...

In South Africa, a strong trade surplus, buoyed by robust commodity prices, will cushion our economy against pressure arising from US policy

More top stories

ANC unlikely to replace Joburg mayor Matongo before 1 Nov

A party source said the ANC in Johannesburg would most likely call on one of the mayoral committee members to stand in as mayor until the local elections

Ramaphosa hits the right notes as he urges Cosatu to...

Cosatu meets to deliberate on its support for the governing party in the upcoming local government elections

DA insists IEC favoured the ANC after Constitutional Court dismisses...

The apex court’s dismissal of the Democratic Alliance’s application to declare reopening candidate registration unlawful came as no surprise

‘Factional’ ANC Veterans League chastised by Motlanthe

ANC Limpopo leaders called on the election committee to change the candidate lists in favour of Ramaphosa faction days before Motlanthe’s report on factions in the party

press releases

Loading latest Press Releases…