Mr Price profits up by 34%

Mr Price, profits up by 34% in first-half profit 2013.


 Mr Price is among the top performers this year as investors bet on continued consumer spending thanks to above-inflation wage increases, cheap borrowing and government grants. 79,1% of total sales is cash-based.

Sales increased 14% to R6 billion rand, helped partly by price increases and new stores, which added nearly 4% to its trading space. Same-store sales increased by 8,5%. The Home chains increased sales and other income by 16,3% to R1,8 billion, with comparable sales up by 10,9% and retail selling price inflation of 4,6%.

Operating profit rose by 36,5% to R178,1 million and the operating margin increased from 8,8% to 10,3% of retail sales.

Mr Price Home increased sales by 16,6% (comparable 11,5%) to R1,2 billion.

Sheet Street opened a net 11 new stores and increased sales by 15,4% (comparable 9,7%) to R540,9 million.

Source: Business Day