Mr Price Group Limited · JSE:MRP
Mr Price — Q2 2026 Earnings Presentation
45 slides from Mr Price's earnings presentation, Nov 20, 2025
Slide 1: Interim Results FY2026
INTERIM RESULTS 30 March 2025 to 27 September 2025 FY2026
Slide 2: Contents
01 OPERATING ENVIRONMENT B y M a r k Bl a i r 02 GROUP PERFORMANCE B y P r a ne e l N und k um a r 03 STRATEGY AND OUTLOOK B y M a r k Bl a i r 1 CONTENTS
Slide 3: Operating Environment
OPERATING ENVIRONMENT By Mark Blair - CEO 01
Slide 4: Consumer Constraint
CONSUMER CONSTRAINT • Since COVID-19, prolonged period of: • Negative real wage growth (2022 - 2023) • Rising debt servicing costs • High inflation impacting food, electricity and transport costs • Consumer confidence remains negative and below pre-COVID-19 levels Real wage growth (indexed to 2019)
Slide 5: Impact on Consumer Spend and Behaviour
IMPACT ON CONSUMER SPEND AND BEHAVIOUR Extended period of consumer constraint has led to lower household expenditure and shifting shopping behaviour Changing shopping behaviours Total household expenditure growth 6.0 • Erratic spending patterns - feast or famine • High percentage of income (60%) spe
Slide 6: Sales Growth
SALES GROWTH Sales growth: Mr Price Group vs rest of the market Insights • Sector slow-down in H1 sales 9.9 Significantly promotional competitor environment due to consumer constraint 7.8 • Group continues to outperform the market off a higher base 6.8 despite highly promotional sector • Continued f
Slide 7: Group Interim Results
GROUP INTERIM RESULTS Revenue HEPS# R18.6bn +5.4% 513.0c +6.5% Gross profit Diluted HEPS R7.2bn +6.3% 497.9c +6.4% EBITDA* Dividend per share R3.7bn +5.5% 323.2c +6.5% Operating profit Cash reserves R2.1bn +5.7% R3.0bn +37.7% 6 *EBITDA reconciliation on pg 41 | #HEPS reconciliation on pg 40 OPERATIN
Slide 8: Consistent Earnings Growth
CONSISTENT EARNINGS GROWTH Headline earnings per share* 2-year CAGR: +8.7% 2-year CAGR: -27.8% 2-year CAGR: -7.2% 2-year CAGR: -0.2% 2-year CAGR: +2.4% c.15.0^ 12.4 10.7 6.7 7.1 6.5 4.6 3.6 0.2 % -0.4 -3.1 -4.6 -5.6 Consistent earnings -6.3 growth driven by -8.0 effective merchandise execution and h
Slide 9: Group Performance
GROUP PERFORMANCE By Praneel Nundkumar - CFO 02
Slide 10: Group Income Statement
GROUP INCOME STATEMENT R’m FY2026 FY2025 H1 % change Revenue (pg 38) 18 574 17 629 5.4% Gross profit (pg 14) 7 177 6 751 6.3% Expenses (pg 15) (5 593) (5 298) 5.6% Operating profit 2 115 2 000 5.7% Net finance expense (297) (313) (4.9%) Profit before taxation 1 818 1 687 7.7% Taxation (491) (451) 8.
Slide 11: Segmental Performance | Apparel
SEGMENTAL PERFORMANCE | APPAREL Retail sales: divisional contributions Segmental sales contribution 78.5% (LY: 78.7%) % change H1 FY2026 Retail sales +5.3% Operating profit +12.3% Sales drivers H1 FY2026 42.6% 4.5% Comp sales growth +1.7% 7.1% 5.7% Unit growth +2.4% 18.6% RSP inflation +2.8% Sales d
Slide 12: Segmental Performance | Homeware
SEGMENTAL PERFORMANCE | HOMEWARE Retail sales: divisional contributions Segmental sales contribution 17.7% (LY: 17.7%) % change H1 FY2026 1.5% Retail sales +5.1% 4.5% Operating profit +12.0% 11.7% Sales drivers H1 FY2026 Comp sales growth +4.3% Unit growth +2.6% RSP inflation +2.4% Sales density R29
Slide 13: Segmental Performance | Telecoms
SEGMENTAL PERFORMANCE | TELECOMS Retail sales: divisional contributions Segmental sales contribution 3.8% (LY: 3.6%) 3.8% % change H1 FY2026 Retail sales +12.4% Operating profit +16.8% Sales drivers H1 FY2026 Comp sales growth (1.9%) Unit growth +4.3% RSP inflation +8.8% Mr Price Cellular and Powerc
Slide 14: Space Growth
SPACE GROWTH 3100 total group owned stores Apparel segment Total stores New stores Store and space growth insights* Mr Price Apparel 635 9 • Weighted average space growth: Mr Price Kids 39 2 combo^ • New: 4.2% • Net: 3.5% Miladys 268 4 • On average 194 new stores opened per year in the last 4 years
Slide 15: Gross Profit Analysis
GROSS PROFIT ANALYSIS FY2026 FY2025 H1 variance Group 40.0% 39.7% +30bps Apparel 40.5% 40.2% +30bps Homeware 42.4% 42.2% +20bps Telecoms 20.9% 20.3% +60bps GP margin performance • Margin gains driven by all trading segments • Smooth transition out of winter into fresh spring/summer merchandise • App
Slide 16: Overhead Expenses
OVERHEAD EXPENSES Total expenses (R’m): Selling expenses 74.8%; Admin expenses 25.2% FY2026 FY2025 H1 % change Depreciation* and amortisation 1 560 1 479 5.5% Employment costs 2 283 2 054 11.1% Occupancy costs 566 543 4.2% Other operating costs 1 184 1 222 (3.1%) Total expenses 5 593 5 298 5.6% • Em
Slide 17: Operating Margin
OPERATING MARGIN FY2026 FY2025 H1 variance Group 11.5% 11.4% +10bps Apparel 12.0% 11.3% +70bps Homeware 10.1% 9.4% +70bps Telecoms 10.6% 10.2% +40bps Operating margin performance • Group margin gain of 10bps to 11.5% • Despite weaker consumer environment operating leverage achieved through efficient
Slide 18: Balance Sheet Analysis
BALANCE SHEET ANALYSIS Gross inventory +4.5% Cash and cash equivalents • Clean exit of winter facilitated by efficient R3.0bn stock management Cash conversion ratio of 81.8% • Improved port operations reducing necessity for early stock arrivals Trade and other receivables +3.9% Net working capital i
Slide 19: Cash Flow Movements
CASH FLOW MOVEMENTS R’m Working capital improvement continues to drive cash generation Operating R3 041 Investing Financing (R3 923) (R269) 9 000 322 372 8 000 3 522 7 000 (1 175) 6 000 (590) 5 000 4 147 (1 558) 4 000 (770) 298 2 973 3 000 (1 595) 2 000 1 000 0 Apr 25 Cash from Working capital Net i
Slide 20: Allocation of Capex
ALLOCATION OF CAPEX Funded wholly from cash reserves Capital expenditure H1 FY2026 R574m 5.0% +49.9% 43.6% • Annual capex forecast of R1.5bn 43.2% • Increase in total capex primarily driven by supply chain investment (Gosforth Park) • Completion of Gosforth Park facility on track for delivery within
Slide 21: Credit Growth and Performance
CREDIT GROWTH AND PERFORMANCE Credit sales Debtors’ book R’m Sept 25 Mar 25 Sept 24 Sept/Mar Sept/Sept R2.1bn 11.8% 4.3% of total sales YoY growth Debtors’ book 3 007 3 006 2 851 0.0% 5.5% NBD: book (excl collection costs) 8.9% 7.8% 1.0% Credit environment • Credit sales primarily driven by existing
Slide 22: Strategy and Outlook
STRATEGY AND OUTLOOK By Mark Blair - CEO 03
Slide 23: Positioned to Win Through the Cycle
POSITIONED TO WIN THROUGH THE CYCLE Consistent outperformance through business differentiation 1 2 DIFFERENTIATED DIVERSE PORTFOLIO FASHION-VALUE OF BRANDS MERCHANDISE 3 4 A TRUSTED BRAND THE RED SINCE 1985 CAP CULTURE 5 6 TRIED AND SUPPLY CHAIN AGILITY TESTED PROCESSES 7 8 A BUSINESS MODEL TECHNOLO
Slide 24: South African Income and Population Dynamics
SOUTH AFRICAN INCOME AND POPULATION DYNAMICS The majority of SA’s population fall into Monthly income % the mass-middle 48% Population % 32% 32% of South Africa’s income is 27% held by 88% of the population 25% 20% 64% 18% 14% 14% of South Africans earn less than R8 000 per month 7% 7% 4% 50% 1% Les
Slide 25: Diverse Portfolio of Brands
DIVERSE PORTFOLIO OF BRANDS The positioning of the group’s brands across a wide spectrum of income levels allows it to service a diverse customer base R225 R910 R624 R1 228 R931 R412 R447 R705 R423 R950 R546 Average spend per transaction 24 Source: RMB Quantium STRATEGY AND OUTLOOK
Slide 26: Leaders in Differentiated Fashion-Value Retail
LEADERS IN DIFFERENTIATED FASHION-VALUE RETAIL Fashionista Fashion value #1 Fashion forward Mr Price Apparel Sportscene Edgars Ackermans Mr Price Apparel leads Shein Woolworths the fashion value matrix Truworths Jet Pep ahead of Shein and all other competitors in the total market Pick n Pay Clothing
Slide 27: Four Decades of Building a Brand Customers Love and Trust
FOUR DECADES OF BUILDING A BRAND CUSTOMERS LOVE AND TRUST Mr Price Apparel, Mr Price Home and Mr Price Mr Price Apparel voted the Sport hold the highest coolest clothing store in brand equity in their South Africa respective sectors Borderless Access, Nielsen & GfK Sunday Times Gen NXT 2025 Mr Price
Slide 28: Our Red Cap Culture | The Mr Price Way
OUR RED CAP CULTURE | THE MR PRICE WAY We weren’t building for the present; we were building for decades.” - Laurie Chiappini and Stewart Cohen MAKING VALUE FASHIONABLE SINCE 1985: AN INTERNAL CULTURE THAT A culture of ordinary people doing extraordinary things REFLECTS EXTERNALLY: Through consisten
Slide 29: Tried and Tested Processes | The Art and Science of Retail
TRIED AND TESTED PROCESSES | THE ART AND SCIENCE OF RETAIL Merchandise and assortment planning Quick in-season response enabled by Fulfillment and replenishment agile supply chain • Inhouse trend department creating • Demand driven fulfillment with partial 6.2% consumer demand for seasonal fashion s
Slide 30: An Agile Supply Chain
AN AGILE SUPPLY CHAIN The agility of our supply chain enables us to bring our customers the most relevant and sought-after fashion • Ability to be flexible and efficient in response to customers’ needs • Increased accessibility to fabrics, fashion trends and innovations • Risk mitigation through div
Slide 31: Our Value Model | Homegrown and Fit-for-Purpose
OUR VALUE MODEL | HOMEGROWN AND FIT-FOR-PURPOSE Future focus: Operating model and • Deep value extraction: unlock efficiencies vs cost control remuneration structure • Continued acquisition integration supportive of a true value model • Ongoing refinement of sourcing strategy A business DNA with val
Slide 32: A Data Driven Organisation
A DATA DRIVEN ORGANISATION Technology investment: DIGITALLY TRANSFORMED SCIENTIFICALLY INFORMED CUSTOMER CENTRIC • Transition to modern cloud solutions • Actioned more than 500 information • Modernising the existing data landscape: supporting key enablement areas: dashboards enhancing reporting capa
Slide 33: Strategy Progress
STRATEGY PROGRESS Strategy Phase 1: 2020 - 2023 Detailed research led to new group strategy launched in June 2021 Increased capacity to support a growth business: • Strengthened internal infrastructure • Significant changes to the broader leadership team • Introduced change at a pace the business co
Slide 34: Current Group Position
CURRENT GROUP POSITION • Strong brands and corporate culture • Talented and ambitious team • Consistent top quartile financial performance • Continually evaluating: • Organic growth opportunities • Acquisition opportunities, however those that merit our capital criteria are very limited in number Fu
Slide 35: Strategy Progress
STRATEGY PROGRESS Strategy Phase 2: 2023 - 2025 Backdrop: Approach: • Group investment matrix in place • Dedicated team in place since 2023 • Exco and management structure well balanced to enable acquisition pursuit • Elevated research efforts to identify new areas of growth and and local business e
Slide 36: Guiding Framework
GUIDING FRAMEWORK Committed to investing for the long-term in the most attractive opportunities based on scalability and returns Considerations for new territories: • Identified sustainable regions and markets for long-term growth • Market size, ease of doing business and competitive landscape • Sta
Slide 37: Outlook
OUTLOOK MACRO ENVIRONMENT • Some encouraging improvement which could support a sustainable business environment: • GNU remains functional and has actioned some positive change in key areas • Stable electricity supply since 2024 and improving port operations • Rand strength, lower inflation target an
Slide 38: Appendix
APPENDIX 04
Slide 39: Revenue
REVENUE FY2026 FY2025 H1 % change Retail sales 17 833 16 902 5.5% Other revenue 625 636 (1.6%) Financial services & telecoms 564 562 0.4% Other 61 74 (18.0%) Total retail sales, interest & other revenue 18 458 17 538 5.3% Finance interest received 116 91 28.0% Total revenue 18 574 17 629 5.4% 38 APP
Slide 40: Space Growth
SPACE GROWTH W.avg net Divisions Store Movements Closing stores growth (m2) 4 9 674 4.0% -1-1 4 4 268 (2.1%) 1 5 183 1.2% (5 trading chains) -18 42 975 7.2% -2 11 335 8.1% -4 3 4 235 (0.1%) -2 4 2 334 (4.2%) 2 23 20.7% 12 73 193.8% Total store movements Total Net growth Expansions and Stores Closure
Slide 41: Earnings and Dividend per Share
EARNINGS AND DIVIDEND PER SHARE FY2026 FY2025 H1 % growth Profit attributed to shareholders (R’m) 1 322 1 239 6.7% W.avg shares in issue (000) 257 693 257 251 0.2% Basic earnings per share 512.8c 481.5c 6.5% Addbacks (R’m) 0.4 0.9 (60.5%) Headline earnings (R’m) 1 322 1 240 6.6% Headline earnings pe
Slide 42: EBITDA Reconciliation
EBITDA RECONCILIATION FY2026 FY2025 H1 % growth Profit before finance costs & finance income 2 115 2 000 5.7% Total depreciation & amortisation 1 601 1 524 5.1% EBITDA 3 716 3 524 5.5% 41 APPENDIX
Slide 43: Group Sales Growth Drivers
GROUP SALES GROWTH DRIVERS Geography Tender type South Africa Rest of Africa Cash Credit +5.3% +8.1% +5.6% +4.3% % of sales % of sales Cash % of sales % of sales +91.6% +8.4% constitutes +88.2% +11.8% Bricks Online 88.2% Units RSP inflation +5.4% +9.7% of total sales +2.5% +3.0% % of sales % of sale
Slide 44: Rest of Africa
REST OF AFRICA As a % of total group sales H1 FY2026 8.4% H1 FY2025 8.2% Number of stores Kenya 10 Ghana 3 Corporate owned stores 251 Franchise 13 264 Zambia 15 Mozambique 15 Botswana 71 Namibia 81 Sales growth (ZAR) Eswatini 28 Lesotho 28 H1 FY2026 +8.1% 43 APPENDIX
Slide 45: Thank You
THANK YOU