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
(`The Mr Price Group` or `the Group`)
The Mr Price Group today reported that sales for the third quarter ending 25th
December grew by 15.5% on the comparable period last year.
The Cash Division (Mr Price Weekend Material, Mr Price Home and Sheet Street)
grew sales by 15.4% for the quarter while the Credit Division (Miladys, The
Hub and Galaxy) grew sales by 15.6%. The third quarter reflected marginal
selling price inflation of 4.4% mainly as a result of changes in merchandise
mix.
Comparable store sales growth for the Group for the third quarter was 12.7% with
comparable sales of 12.4% in the Cash Division and 13.8% in the Credit Division.
All chains improved operating margins and profitability for the period.
The Group increased sales by 16.5% in the month of December with comparable
store sales increasing by 12.8% in that month.
Mr Price Weekend Material performed well following improvements in merchandise
and marketing, growing sales by 11.5% in the third quarter with 3.1% inflation.
Comparable store sales growth was 10.3%.
Also very pleasing was the performance of the Groups` Home Chains (Mr Price Home
and Sheet Street) which reported sales growth of 24% for the third quarter off a
firm base in the previous year with same store sales growth of 17.2%. Inflation
of 11% was primarily caused through changes in product mix.
Miladys grew sales by 19.5% during the third quarter despite deflation of 7.3%
caused by mix changes and the introduction of lower price points. Comparable
sales of 16.6% were achieved.
The Hub grew sales by 8.8% with marginal deflation. Galaxy grew sales by 16%
during the third quarter with inflation of 7.1%.
Control of debtors has remained tight and stocks are below budgeted levels. The
cash sales percentage increased marginally to 86.6% of total sales and seasonal
cash balances at the end of December reached a record R630 million.
The positive trading environment, which is now extending into cash retailing, is
expected to continue into the final quarter and sales for the first three weeks
of January have been good. The Group is on track to further improve
profitability and achieve its stated target of a 10% operating margin on sales
of R6 billion by 2007.
Durban
17 January 2004
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
CORPORATE FINANCE
Date: 17/01/2005 10:00:16 AM
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