Mr Price Group Limited · JSE:MRP
Mr Price — FY2025 Earnings Presentation
48 slides from Mr Price's earnings presentation, June 2025
Slide 1: FY2025 Annual Results
F Y2 0 2 5 Annual Results 31 March 2024 to 29 March 2025
Slide 2: Contents
01 OPERATING 02 03 GROUP STRATEGY & ENVIRONMENT PERFORMANCE OUTLOOK B Y M ARK B LA I R BY P R AN E E L N U N D K U MAR BY MA RK BLA IR 1 CONTENTS
Slide 3: Operating Environment
01 OPERATING ENVIRONMENT BY MARK BLAIR - CEO
Slide 4: Operating Environment
OPERATING ENVIRONMENT Heightened global uncertainty led to emerging Improving economic position but became challenges susceptible to global and domestic impacts GLOBAL SOUTH AFRICA • Geopolitical volatility continued with little sign of resolution • GNU positively shifted sentiment and growth outloo
Slide 5: Consumer Environment
CONSUMER ENVIRONMENT PRE TOTO PRE EARLY 2024: EARLY PROLONGED 2024: CONSUMER PROLONGED CONSTRAINT CONSUMER CONSTRAINT • Weak disposable income levels and declining household expenditure due to: • Elevated inflation and interest rates • High debt servicing costs • Negative real wage growth • Low cons
Slide 6: Group Performance: Sales growth and GP margin
GROUP PERFORMANCE Sales growth and GP margin 11.6 GP margin: GP margin: Insights +20bps +80bps 9.9 • Consistent improvement in sales growth and GP margin 7.8 gains Sales growth (%) 6.8 6.2* • Continued outperformance 5.1 of group sales vs the market 4.5 4.6 • Consistent market share gains over two y
Slide 7: Group Annual Results
GROUP ANNUAL RESULTS FY2025 FY2024 % growth H2 FY2025 Revenue R40.9bn R37.9bn 7.9% 10.0% EBITDA* R8.9bn R8.2bn 8.2% 9.8% Operating profit R5.8bn R5.3bn 8.9% 11.7% Operating margin 14.2% 14.0% +20bps +30bps Diluted HEPS# 1 379.3c 1 252.6c 10.1% 12.1% Dividend per share 897.1c 810.3c 10.7% 12.7% 6 *EB
Slide 8: Earnings Growth | Retail Sector Trends
EARNINGS GROWTH | RETAIL SECTOR TRENDS Headline earnings per share* 12.4 10.7 6.7 7.1 4.6 3.6 0.2 -0.5 -3.1 Growth (%) -5.6 -6.3 -15.3 -16.8 -24.8 -31.0 MRPG Company A Company B Company C Company D 7 *Per company financial statements, latest three reported periods OPERATING ENVIRONMENT
Slide 9: Value Creation
VALUE CREATION 184 stores opened Group market share gains of 50bps H2: +40bps 303m units sold GP margin growth of 80bps H2: 50bps Cash generation of R8.7bn Operating profit growth of 8.9% H2: 11.7% Cash balance of R4.1bn zero debt Diluted HEPS growth of 10.1% H2: +12.1% 8 OPERATING ENVIRONMENT
Slide 10: Group Performance
02 GROUP PERFORMANCE BY PRANE EL NUNDKUMAR - CFO
Slide 11: Group Income Statement
GROUP INCOME STATEMENT R’m FY2025 FY2024 % change H1 H2 Revenue (pg 40) 40 933 37 944 7.9% Revenue 5.2% 10.0% Gross profit (pg 15) 16 046 14 603 9.9% Gross profit 8.1% 11.2% Expenses (pg 16) 11 361 10 332 10.0% Expenses 9.2% 10.6% Operating profit 5 780 5 307 8.9% Operating profit 4.0% 11.7% Net fin
Slide 12: Segmental Performance | Apparel
SEGMENTAL PERFORMANCE | APPAREL Retail sales: divisional contribution Segment sales contribution 79.7% (LY:79.7%) % change FY2025 H2 Retail sales +7.9% +9.8% Operating profit +9.1% +14.6% 4.1% Sales drivers FY2025 H2 42.5% 6.9% Comp sales growth +3.5% +5.8% 5.2% Unit growth +4.1% +5.0% 21.0% RSP inf
Slide 13: Segmental Performance | Homeware
SEGMENTAL PERFORMANCE | HOMEWARE Retail sales: divisional contribution Segment sales contribution 16.9% (LY:17.1%) 1.5% % change FY2025 H2 4.3% Retail sales +6.4% +7.7% 11.1% Operating profit +21.9% +31.3% Sales drivers FY2025 H2 Comp sales growth +3.1% +5.8% Unit growth +1.8% +4.6% RSP inflation +4
Slide 14: Segmental Performance | Telecoms
SEGMENTAL PERFORMANCE | TELECOMS Retail sales: divisional contribution Segment sales contribution 3.4% (LY:3.2%) 3.4% % change FY2025 H2 Retail sales +13.2% +13.2% Operating profit +13.6% +12.7% Sales drivers FY2025 H2 Comp sales growth +1.5% +3.3% Unit growth (9.7%) (5.5%) RSP inflation +28.5% +21.
Slide 15: Space Growth
SPACE GROWTH Total group owned 3 030 stores Apparel segment Total stores New stores Store and space growth insights* Mr Price Apparel 626 28 • Weighted average space growth: Mr Price Kids 39 8 • New: 5.1% Miladys 265 8 • Net: 4.3% Mr Price Sport 178 3 Power Fashion 324 33 • New stores: 184 • Apparel
Slide 16: Gross Profit Analysis
GROSS PROFIT ANALYSIS Gross profit Medium-term FY2025 H2 FY2024 target Group 40.5% 41.1% 39.7% 40% - 42% Apparel 41.2% 41.9% 40.5% 40% - 42% Homeware 42.3% 42.5% 40.6% 40% - 42% Telecoms 20.0% 19.8% 19.2% 18% - 20% GP margin performance • FY2025 GP margin gains driven by all segments, with two years
Slide 17: Overhead Expenses
OVERHEAD EXPENSES Total expenses (R’m): Selling expenses 74.5%; Admin expenses 25.5% FY2025 FY2024 % change Cont. to RSOI# • Employment costs • Strong H2 trade - higher variable performance incentive Depreciation* and amortisation 3 030 2 833 6.9% 7.4% • Opened 184 new stores • Minimum wage increase
Slide 18: Operating Margin
OPERATING MARGIN Medium-term FY2025 H2 FY2024 target Group 14.2% 16.3% 14.0% 13% - 15% Apparel 15.4% 18.5% 15.3% 16% - 18% Homeware 12.1% 14.2% 10.5% 13% - 15% Telecoms 9.7% 9.3% 9.8% 9% - 11% Operating margin performance • Group margin recovery of 20bps to 14.2% • H2 margin expanded 30bps to 16.3%
Slide 19: Balance Sheet Analysis
BALANCE SHEET ANALYSIS Gross inventory • Early arrival of stock ahead of Easter shift to April Net working capital +10.6% • Stock freshness (0 - 3 months) generated remained high at 85.1% +R87m Cash & cash equivalents Trade & other receivables • Debtors’ interest and charges +5.5% up 6.1% • Credit s
Slide 20: Cash Flow Movements
CASH FLOW MOVEMENTS R’m Cash generation driving working capital improvement 14 000 Operating R8 442m Investing Financing (R5 934m) (R1 128m) 615 12 000 8 577 87 (837) 10 000 (823) 4 147 8 000 (2 178) (124) 6 000 4 000 (3 085) 2 798 (883) 2 000 0 Apr 24 Cash from Working capital Net interest Taxation
Slide 21: Credit Growth Performance
CREDIT GROWTH PERFORMANCE Credit sales Credit environment: • Improved in H2 with increased demand and spend - healthier household balance sheets • Interest rate cuts of 75bps R4.2bn 10.7% 3.8% • Increased approval rate to 20.3% led by of total sales YoY growth adjusted scorecard, peaked at 23.8% by
Slide 22: FY2025 Highlights
FY2025 HIGHLIGHTS CONSECUTIVE years of profitable market share gains R4.1bn cash available with zero debt Operating margin Positive unit growth and accelerating comp growth expansion, mid-point of medium-term target range Cash sales contributed Record operating profit of 89.3% R5.8bn Further GP Doub
Slide 23: Strategy & Outlook
03 STRATEGY & OUTLOOK BY MARK BLAIR - CEO
Slide 24: Strategy Framework
STRATEGY FRAMEWORK STRATEGIC OUTCOMES Surprise and delight our customers People | Operations | Sustainability 01 Profitable market share 02 Customer obsessed 03 Diversified offering FRONTLINE ENABLERS • Growing comp sales • Leading brand equity • Omni-channel • Space growth • Customer engagement • D
Slide 25: Value Creation
VALUE CREATION Customers Associates Shareholders ESG Certified Top Employer 2025 #1 most valuable R2.2bn 128m fashion-value retailer in units procured in in dividends paid South Africa South Africa 4 strongest th > 32 000 29.5% 64m products employed have a sustainable attribute brand in South Africa
Slide 26: Vision: To Be the Most Valuable Retailer in Africa
VISION: TO BE THE MOST VALUABLE RETAILER IN AFRICA Strategically invested in growth vehicles and enablers to build a stronger and healthier business for a sustainable future Focused research Technology modernisation and assessment of South African landscape Launch of new Acquisition of Supply chain
Slide 27: Growth and Diversification
GROWTH AND DIVERSIFICATION FY2019 FY2025 Divisional contribution to retail sales Divisional contribution to retail sales 2.3% 1.5% 3.4% Revenue Revenue 7.5% R22.6bn 4.3% R40.9bn 11.1% 17.3% Retail sales Retail sales R21.4bn 4.1% 6.9% 42.5% R39.4bn 58.8% 6.8% 7.2% 6 divisions 5.2% 9 divisions (5 reta
Slide 28: Growth Vehicles | Acquisitions
GROWTH VEHICLES | ACQUISITIONS Focused research and assessment of the South African retail landscape Launch of new group strategy Acquisitions • Combined FY2025 retail sales of R11.7bn up 8.9% (H2: 11.9%) contributing 29.3% to group sales • Strong and profitable market share gains across each busine
Slide 29: Growth Vehicles | Organic Concepts
GROWTH VEHICLES | ORGANIC CONCEPTS Focused research and assessment of the South African retail landscape Launch of new group strategy Organic concepts • Offer represented in 581 Mr Price • Offer represented in 562 group stores Apparel stores • 61 standalone stores • 39 standalone stores | 10 store-i
Slide 30: Strategic Execution | Performance Momentum
STRATEGIC EXECUTION | PERFORMANCE MOMENTUM • GROUP • Sales growth: 2-year CAGR of 11.9% • 2 years of positive and improving comp sales growth • 5.1% new w.avg space growth | 184 new stores • +80ps GP margin expansion RLC market share +50bps • +20bps Op margin expansion +30bps RLC: • 2 years of marke
Slide 31: Strategic Execution | Homeware Recovery
STRATEGIC EXECUTION | HOMEWARE RECOVERY Consolidating market share and improving profitability • Continues to hold healthy market share level* • Appointed new MD • Most loved and highest brand equity in SA • Strategic assortment changes delivering • Under-indexed categories growing ahead of targeted
Slide 32: Strategic Enablement | Digital and Tech Modernisation
STRATEGIC ENABLEMENT | DIGITAL AND TECH MODERNISATION Investment areas enabling the achievement of our vision Digitally transformed Scientifically informed Customer centric • Completed ERP to Cloud by April 2023 • Increased use of data science • Enhance CRM capabilities for the group - continue to l
Slide 33: Strategic Enablement | Supply Chain
STRATEGIC ENABLEMENT | SUPPLY CHAIN Streamlining supply chains for growth and sustainability, aligned with our value model Current facilities and operations KwaZulu-Natal Gauteng Western Cape • Hammarsdale: 62 000m 2 • Studio 88: 10 000m 2 • Yuppiechef: 3 000m 2 • Power Fashion: 11 000m 2 • Gosforth
Slide 34: Strategic Execution | Resilient Business Model
STRATEGIC EXECUTION | RESILIENT BUSINESS MODEL Sufficient headroom for growth, supported by: Strong execution of differentiated fashion-value via EDLP Defend high market share categories and identified key departments for growth Remain predominantly cash-based and highly cash generative | Opportunit
Slide 35: Scalable Opportunities | Strategic Research
SCALABLE OPPORTUNITIES | STRATEGIC RESEARCH Focus through FY2024 and FY2025 • Research new areas of growth: Group strategy - ensure we do the • Where opportunities are scalable and metrics are right things to deliver growth attractive • Evaluated several organic and acquisition opportunities - capit
Slide 36: Capital Allocation
CAPITAL ALLOCATION Approach Fixed capital allocation and distribution: FY2025 and FY2026 Store capex R492m All investment decisions are thoroughly analysed R700m to ensure capital is directed toward a balanced R121m portfolio of high-return growth vehicles and Technology assets R250m capacity-buildi
Slide 37: Top Quartile Returns | Leading Metrics
TOP QUARTILE RETURNS | LEADING METRICS Key operating FY2025 FY2024 Medium-term target Achieved metrics Target revisions from FY2026 Returns • ROE target: 25% - 27% ROE 27.2% 26.6% 24% - 26% ✔ • Cash conversion ratio: >85% ROA 12.2% 12% - 14% ✔ • Expenses/RSOI: 27.5% - 28.5% 11.7% Dividend payout rat
Slide 38: A Proudly South African Business Focused on Impact
A PROUDLY SOUTH AFRICAN BUSINESS FOCUSED ON IMPACT Demonstrated ability to grow Consistently invested in South Africa* 39-year CAGR Retail sales: Operating profit: HEPS: Jumpstart employment: 29 791 +17.2% +19.0% +18.2% Plastic packets removed: 158m Localisation: Delivered sustainable long-term retu
Slide 39: Outlook
OUTLOOK Uncertain macro-environment • 9 July tariff considerations • Continuity of GNU • GDP growth: actual vs forecast Volatile consumer environment • Short-term relief from additional interest rate cut and lower inflation • Inflation likely to rise through remainder of the year • Firm H2 base: two
Slide 40: Appendix
APPENDIX 04
Slide 41: Revenue
REVENUE FY2025 FY2024 % change Retail sales growth FY2025 Retail sales 39 439 36 586 7.8% H1 H2 Other revenue1 1 276 1 197 6.6% Total retail sales growth 5.1% 9.9% Financial services & telecoms 1 099 1 030 6.6% Comparable stores sales growth 0.4% 5.7% Other2 178 167 6.6% Total retail sales, interest
Slide 42: Allocation of Capex
ALLOCATION OF CAPEX FUNDED WHOLLY FROM CASH RESERVES 6.1% Capital expenditure FY2025 R830m 12.6% 22.0% 10.1% Primarily allocated to stores (59.3%) 9.5% 39.7% New stores Store revamps Logistics Key Other Store expansions Technology 41 APPENDIX
Slide 43: Space Growth
SPACE GROWTH W.avg net growth Divisions Store Movements Closing stores (m2) -1 10 36 665 4.7% -9 -9 1 8 265 (0.3%) 3 178 1.3% (5 trading chains) -13 74 951 6.9% -4 33 324 8.6% -6 -3 1 8 231 2.4% -21 -11 1 334 (4.1%) 1 21 51.3% 20 61 33.5% Total store movements Total Net growth Stores Closures: 54 Re
Slide 44: Earnings & Dividend per Share
EARNINGS & DIVIDEND PER SHARE FY2025 FY2024 % growth Profit attributable to shareholders (R’m) 3 647 3 280 11.2% W.avg shares in issue (000) 257 484 257 016 Basic earnings per share 1 416.3c 1 276.2c 11.0% Addbacks (R’m) 20 26 Headline earnings (R’m) 3 667 3 306 10.9% Headline earnings per share 1 4
Slide 45: EBITDA Reconciliation
EBITDA RECONCILIATION FY2025 FY2024 % growth Profit from operating activities 5 780 5 307 8.9% Total depreciation & amortisation 3 177 2 919 6.8% EBITDA 8 897 8 226 8.2% 44 APPENDIX
Slide 46: Group Sales Growth Drivers
GROUP SALES GROWTH DRIVERS Geography Tender type South Africa Rest of Africa Cash Credit +7.3% +9.5% +7.9% +3.8% Cash % of sales 92.1% % of sales 7.9% constitutes % of sales 89.3% % of sales 10.7% Bricks Online 89.3% Units RSP inflation +7.8% +7.9% of total sales +3.6% +3.7% % of sales 97.9% % of sa
Slide 47: Rest of Africa
REST OF AFRICA As a % of total group sales FY2025 FY2024 7.8% 7.9% Number of stores Kenya 10 Ghana 3 Corporate owned stores 247 Franchise 12 259 Zambia 15 Mozambique 13 Botswana 70 Namibia 81 Sales growth (ZAR) Eswatini 28 Lesotho 27 FY2025 +9.5% 46 APPENDIX
Slide 48: Thank you
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