Mr Price: First-half profit rises 23% to R921m

Published Nov 18, 2014

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MR PRICE Group’s first-half profit increased 23 percent as the clothing and homeware retailer’s focus on cash sales helped offset weaker consumer spending in South Africa, it said yesterday. The company said net income was R921 million in the six months to September, compared with R747m a year earlier. Sales increased 15 percent to R8.3 billion. The company raised the half-year dividend 26 percent to 211.5 cents. South African retailers have struggled this year as strikes and unemployment of more than 25 percent constrain consumer spending. Companies that make sales on credit have taken the bulk of the strain, as customers on lower to mid incomes fail to repay loans. Mr Price cash sales gained 18 percent in the period, and made up 81 percent of the total. “Although consumer confidence increased slightly in the third quarter of 2014, retail trading conditions are expected to remain challenging in the medium term,” Mr Price said. The stock has jumped 50 percent this year, the best performer on the FTSE/JSE Africa General Retailers index. Shares fell 0.94 percent to close at R242.20 yesterday. – Bloomberg

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