South African retailer Mr Price, which uses cellular handsets and accessories to drive footfall traffic into its stores and online platforms, reported strong growth in sales from its telecoms segment in the 26 weeks ended 2 October 2021.
Today, the JSE-listed retailer reported that its Telecoms Business recorded a 22.8% rise in sales to R522 million against solid growth in the base of 18.6%.
Mr Price attributed the strong growth in Telecoms Business to the inclusion of Power Fashion’s cellular sales.
“Cellular handsets and accessories gained 80bps of market share according to GfK (100bps including acquisitions),” Mr Price informed investors.
Telecoms Business sells cellular products and services.
Mr Price’s Financial Services and Telecoms Business were previously presented as one segment (Financial Services and Cellular).
However, the chief decision-makers have separated into two segments for a more meaningful breakdown as the Telecoms business grows.
MR Price Group’s headline earnings per share (HEPS) increased 34.4% to 448.3 cents. HEPS is South Africa’s main profit gauge.
The total group revenue rose 35.2% to R12.4 billion, with retail sales increasing 37.8% to R11.9 billion, a strong performance considering the external disruptions during the full year 2022.
“These results were additionally supported by the inclusion of recently acquired Power Fashion, effective 1 April 2021, and Yuppiechef effective 1 August 2021. Excluding acquisitions, total revenue and retail sales increased 25.8% and 27.8% respectively.”