Excluding the impact of a higher Secondary Taxation on Companies charge, which arose as a result of paying distributions mainly from share premium in the prior year, diluted headline earnings were up 20.4%.
A final dividend of 92.8 cents per share was declared - a 16.7% increase on a year ago.
Commenting on the results, CEO Alastair McArthur said that he was pleased with the performance given extremely difficult trading conditions.
Retail sales grew by 19.3% to R8.6 billion with comparable sales, which includes sales of expanded and relocated stores in like-for-like locations, up by 11.4%.
The larger Apparel chains - Mr Price, Miladys and Mr Price Sport - had a particularly good year growing sales by 22.7% to R5.9 billion, with comparable sales up 16.2%. Mr Price was the star performer, growing sales by 24.0% with comparable sales 20.3% higher.
Miladys increased sales by 10.2% and exceeded one billion rand for the first time. Comparable sales growth increased by 4.0%. Mr Price Sport opened eight stores bringing the total number of stores under this brand to 31. Sales of R367.1 million were generated in this new chain.
The Home chains - Mr Price Home and Sheet Street - remained under pressure as consumers deferred expenditure on home products in the tighter economic environment. Sales were up by 12.1% to R2.7 billion with comparable sales growing 2.0%.
Mr Price Home grew sales by 13.3% to R1.9 billion while Sheet Street increased sales by 9.7%to R0.8 billion. The softer trading conditions also led to higher markdowns and as a consequence, operating profits in this division declined by 29.3% to R83.3 million.
However, market share gains in both chains augurs well for the future, it said.
Mr Price International added 10 new franchise stores, bringing the total to 17. These stores performed well and infrastructure is being put in place to add more franchised stores in Africa and beyond.
The group has continued to expand its footprint notwithstanding the economic climate and opened 86 new stores, including franchised, during the year, ending the year with 971 stores. In addition, 54 stores were expanded by a weighted average total of 17 504 net square metres. The result was that group's weighted average trading space increased by 16.5%.
"Our more established businesses certainly performed better. They have the experience of previous downturns and have benefited from merchandise systems improvements made through Project Redgold. Customers delayed purchases of home products and this has made life more difficult for the home chains, but they're well positioned for an upturn," McArthur said.
McArthur said the objective of the management team was to maintain or even improve on that performance through growth and margin enhancement.
More than 50 stores, including franchised stores, will be opened in the year ahead to bring the total number of stores over the 1,000 mark. Expansion of high performing stores would continue.
McArthur said lower interest rates are positive for retail, however levels of indebtedness remain high and there will be a lag before the impact of these lower interest rates reaches customers.
While he is hopeful that the negative trend in the retail sector will turn before Christmas trading, global uncertainties could delay the local economic recovery.
He concluded the group was well positioned to capture further market share.
Published courtesy of
