Mr Price Group raises final dividend 12.7% after market share gains in volatile consumer market

MR PRICE Group increased its final dividend a creditable 12.7% to 593.5 cents a share after the value fashion retailer managed to raise its operating profit margin through lower mark-downs, increased sales, and market share gains, after a muted first half.

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Total revenue increased by 7.9% to R40.9 billion, and the group gained 50 basis percentage points (bps) of market share, as measured by the Retail Liaison Committee. The gross margin expanded 80 bps to 40.5%, and operating profit reached a record level of R5.8bn, with the operating margin increasing 20 bps to 14.2%.

Headline earnings a share increased 10.7% to 1 424 cents, respectively, after a stronger second half. This was despite the weaker month of February for the retail sector and the shift of school holidays and Easter to April, after the financial year-end, from March.

"The first half was challenging for the retail sector but improved in the second half. We are very satisfied to have gained similar levels of market share in both periods, reflecting the value we were able to provide our customers despite very different economic conditions," CEO Mark Blair said in a statement on Friday.