Mr Price recently released solid financial results for the 53 weeks ended 3 April 2021. These results beat analyst expectations across most metrics. The company’s operational performance was driven by market share gains and stronger second-half performance. We think the positive share price reaction was driven by the solid results and their newly outlined strategy during its earnings call, which was positively received by the market.
Mr Price intends being the best value retailer in Africa across all retail segments by way of market cap valuation, and identified six strategic pillars to achieve this. Mr Price also plans to improve its earnings growth significantly over the next few years. The company said that it will be looking to pursue growth opportunities in the aspirational value segment in SA across its existing retail sectors. The share is trading at a 12-month forward price-to-earnings multiple (P/E) of 19.2 times, slightly higher than its historical average of 17.9 times (see graph).
Segmental Overview
Retail sales at the Mr Price division declined by 3.4% year on year but saw strong growth of 8.4% in the second half of the financial year. The second-half performance was driven by market share gains and sales at higher margins. Mr Price Sport saw sales decline by 10% during the period, driven by negative Covid-19 effects on the back of sports, gym and school closures.
Bu hikaye Finweek English dergisinin 25 June 2021 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Finweek English dergisinin 25 June 2021 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
THE HEALTH OF SA'S MEDICAL SCHEMES
As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.
The effect of Gilbertson's departure
With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.
Making money from music
Why investors are increasingly drawn to the music industry.
Conviction is key
Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.
The post-pandemic toolkit
How CFOs can use technology to support growth.
Big city living exodus
Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.
Big compact, big value
Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.
On barriers to entry
There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.
Fear and greed in one index
To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.
Africa's largest data centre facility coming soon
Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.
