Mr Price Shares Jump 15 Percent After Annual Results
The South African retailer reported a 2.4 percent rise in annual diluted headline earnings per share to 14.11 rand as gross profit margins expanded across all units. Investors reacted positively to a steady dividend payout and management's confirmation that the NKD Group acquisition remains on track.
Mr Price shares rose 14.8% to 172 rand on Friday midday following annual earnings growth and a steady dividend. Diluted headline earnings per share rose 2.4% to 14.11 rand despite costs from the NKD Group acquisition. This performance signals investor confidence in Mr Price as management maintains a 63% dividend payout ratio and clears acquisition risk.
Mr Price reported group retail sales grew 4.3% to 41.1 billion rand for the year ended March 28. Comparable store sales rose 1.1% as consumer discretionary spending remained constrained in South Africa. Gross profit margin expanded 70 basis points to 41.2% across all business units.
