Report
EUR 9.36 For Business Accounts Only

Mr. Price H1 17A results in line with ACe


  • MRP group revenue and other income grew by 1.6% y/y to ZAR 9.1bn in H1 17A (ahead of ACe of 0.9% y/y), mainly driven by a weaker performances in MRP apparel, which declined by 0.5% y/y (ACe: +0.1%) and Milady’s declining by -11% y/y (ACe: -10.7%). Both MRP apparel and Milady’s reported implied negative volume growth of c.15% y/y and c.22% y/y, respectively.
  • EBIT decreased by 13.4% y/y to ZAR 1.2bn in H1 17A, in line with ACe. The group’s EBIT margin contracted by c.240bps y/y to 13.7% (ACe: 13.8%), due to the slowing top line growth, a weaker ZAR (depreciating c.11% y/y to USD year to date),higher markdowns and an increase in net operating expenses (+8.1% y/y).
  • MRP Sport was the best performing division with revenue growth of 13.3% y/y (ACe: 10.6% y/y) and LfL growth of only 2.1%.


Underlying
MR PRICE GROUP

Provider
Arqaam Capital
Arqaam Capital

Established in 2007, Arqaam Capital is a specialist emerging markets investment bank, bringing regional and international product offerings to the emerging markets. Arqaam Capital combines international best practice with expertise in the markets in which we operate. Our primary role is to provide financial intermediation and create investment opportunities for frontier and emerging markets investors looking to invest in their own markets and abroad, as well as international investors seeking opportunities in target frontier and emerging markets. Arqaam Capital is headquartered in the Dubai International Financial Centre (DIFC), with additional offices in Libya, Lebanon, Egypt, and South Africa. 

Arqaam Capital's research platform provides the largest coverage footprint of MENA equities and one of the largest on the African continent with a total of 300 stocks under coverage. Arqaam Capital is ranked as one of the leading research providers in the region - a reflection of its broad coverage universe, its in-depth and high quality research, as well the compelling investment ideas that the team generates. The analysts closely analyze their sectors and issue in-depth company and sector research while the strategy team connects the micro with the macro, focusing on index analysis, macroeconomics and strategy research. 

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