MR PRICE GROUP LIMITED - TRADING UPDATE
MR PRICE GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1933/004418/06)
Share Code : MPC
ISIN : ZAE000026951
TRADING UPDATE - MR PRICE GROUP LIMITED
("The Mr Price Group" or "the Group")
The Mr Price Group today reported that the value of Group sales for the third
quarter ending December was up by 13% on the comparable period last year. The
Cash Division (Mr Price Weekend Material, Mr Price Home and Sheet Street) grew
sales by 14.5% for the quarter and 13% for December while the Credit Division
(Miladys, The Hub and Galaxy) grew sales for the quarter by 8.5% and by 10% for
December. Comparable store sales growth for the Group for the third quarter was
7.2%, with the Cash Division recording 7% and the Credit Division 7.6%.
As a value retailer, the Group"s policy of passing on benefits of lower cost
prices to consumers resulted in a price deflation factor of 10% for the third
quarter compared to an inflation factor of 12% for the same period last year.
Lower prices resulted in a 24% increase in unit sales for the quarter while
deflation had a muting effect on increases in Rand terms. The increase in
customer numbers and unit sales will enhance long
term market share growth and brand value positioning. Little deflation is
expected in 2004 during which the full benefits of the lower interest rates are
expected to be felt in cash retailing.
Despite deflation, margins have been restored particularly in the two home
chains, Mr Price Home and Sheet Street, following the strategic re-pricing
reported in the first half. Stocks are at acceptable levels and debtors remained
tightly controlled.
The Group continues to anticipate an increase in earnings for the year.
Durban
14 January 2004
Sponsor
Merchant Bank and Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
CORPORATE FINANCE
Date: 14/01/2004 02:00:04 PM Produced by the JSE SENS Department
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