​FY 17A MRP reported group revenue at ZAR 19.7bn; -1.2% y/y and -1.7% below ACe. On a 52 week comparable basis, sales increased 0.7% y/y in FY 17A, implying flat sales growth in H2 17A (vs. H1 17A at +1.6% y/y). MRP Apparel and Milady’s underperformed with comparable sales growth of -4.7% y/y and -6.9% y/y respectively in FY 17A.
FY 17A EBIT declined 15% y/y to ZAR 3bn; 3% below ACe. EBIT margin declined 260bps y/y to 15.5%, 20bps below ACe. HEPS at ZAR 9.1/share was slightly above our estimate at ZAR 9.0/share.
Outlook remains uncertain as the operating environment is challenging and MRP’s focus is likely to remain on regaining market share.
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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