Retail group Mr Price (MPC) on Wednesday reported a 19% rise in diluted headline earnings per share to 464.5 cents for the 52 weeks ended 31 March 2012, from 388.8 cents a year ago.
The current financial year comprised 52 trading weeks, while the prior year included 53 trading weeks, the group noted.
Total dividends for the year increased by 24.6% to 314 cents per share and the final dividend of 220.4 cents per share increased by 25.7%.
Operating profit grew by 21.7% to R1.5 billion. Revenue grew 10% to R12.1 billion.
Retail sales for the 52 weeks ended 31 March 2012 increased by 10.2%, while sales in like-for-like (comparable) locations were up by 8.2%. On a 52 week on 52 week basis the sales increase was 12.6% and comparable sales were up by 10.3%.
Although the group opened 46 new stores during the year, weighted average trading space remained flat due to planned space reductions and the closure of 21 stores.
The group ended the year with 962 stores and employed 17,894 associates.
The company's return on equity increased from 46.0% to 47.2%.
Mr Price's Apparel chains increased sales and other revenue by 13.7% to R8.7 billion with comparable sales up by 10.6% and retail selling price inflation of 4.6%. Operating profit grew by 21.7% to R1.5 billion and the operating margin increased from 16.7% to 18.0% of retail sales.
Mr Price Apparel recorded sales growth of 13.2% (comparable 9.8%) to R6.5 billion (55.6% of Group sales).
Mr Price Sport grew sales by 26.5% (comparable 11.7%) to R686.0 million and performed particularly well in the second half of the year where comparable sales grew by 15.5%.
Miladys benefited from a more focused merchandise offer and grew sales by 11.2% (comparable 14.0%) to R1.1 billion despite closing a net 10 stores.
The Home chains increased sales and other revenue by 10.7% to R3.4 billion, with comparable sales up by 9.5% and retail selling price inflation of 5.9%.
Sheet Street increased market share and grew sales by 12.4% (comparable 12.0%), exceeding R1 billion for the first time.
Despite increased dividends, capital expenditure and the purchase of treasury shares to the value of R260.2 million, the group ended the year with cash resources of R1.2 billion.
In line with the growth in unsecured credit in the South African market, the group's year end gross trade receivables increased by 47.3% to R1.2 billion.
“The book has continued to be well managed, with a net bad debt to book ratio of 3.9% and is adequately provided against at year end,” Mr Price said.
It added that the first Mr Price Apparel test store opened in Nigeria on 29 March and early indications were positive.
The first corporate-owned store in Ghana is expected to open in June.
Looking ahead, the group said it would retain its focus on the local retail market by continuing to offer fashionable merchandise at everyday low prices, while testing exciting opportunities in new markets. - I-Net Bridge