Embed Size (px)
DESCRIPTION
Mr Price Group Six Year Review
Citation preview
MR PRICE GROUP 2011
SIX YEAR REVIEW
Mr Price Group
Abridged statements of financial position, cash flows and income
(R'000)
26 yearcompoundgrowth %
Five yearcompoundgrowth % 2012 2011 2010 2009 2008 2007
Statement of financial position
Assets
Non-current assets 743 404 607 681 686 475 893 460 846 334 712 485
Property, plant and equipment 539 463 459 634 530 407 603 299 566 176 464 082
Export partnerships - - - 220 254 220 310 201 688
Other 203 941 148 047 156 068 69 907 59 848 46 715
Current assets 3 551 664 3 253 456 2 923 769 2 377 410 1 945 182 1 781 177
Inventories 1 168 191 953 666 934 671 1 002 456 909 094 741 229
Trade and other receivables 1 182 895 931 278 818 355 714 167 570 811 469 003
Cash 1 200 578 1 368 512 1 170 743 660 787 465 277 570 945
4 295 068 3 861 137 3 610 244 3 270 870 2 791 516 2 493 662
Equity and liabilities
Equity attributable to shareholders 2 779 516 2 394 184 2 070 823 1 764 187 1 479 331 1 316 808
Non-current liabilities 194 474 179 010 200 966 225 673 241 142 231 263
Current liabilities 1 321 078 1 287 943 1 338 455 1 281 010 1 071 043 945 591
Trade and other payables 1 234 918 1 241 624 1 310 170 1 208 450 1 034 118 821 139
Other 86 160 46 319 28 285 72 560 36 925 124 452
4 295 068 3 861 137 3 610 244 3 270 870 2 791 516 2 493 662
Statement of cash flows
Cash flows from operating activities 1 059 002 1 104 698 1 021 444 783 153 578 774 387 945
Cash flows from investing activities 310 244 155 043 100 924 219 246 255 020 237 381
Cash flows from financing activities 913 375 748 026 401 799 367 135 429 598 203 691
Net (decrease)/increase in cash and cash equivalents 164 617 201 629 518 721 196 772 105 844 53 127
Cash and cash equivalents at beginning of the year 1 368 512 1 170 743 660 787 465 277 570 945 624 523
Exchange (losses)/gains 3 317 3 860 8 765 1 262 176 451
Cash and cash equivalents at end of the year 1 200 578 1 368 512 1 170 743 660 787 465 277 570 945
Income statement
Retail sales 21.1% 14.2% 11 766 765 10 673 364 9 454 130 8 591 258 7 203 640 6 056 757
Profit from operating activities 24.0% 23.2% 1 741 823 1 433 768 991 518 827 188 716 180 612 685
Profit attributable to shareholders 27.5% 20.5% 1 217 101 1 010 254 673 568 615 723 550 943 479 164
Headline earnings attributable to shareholders 27.5% 20.5% 1 222 375 1 026 399 682 135 622 724 553 165 480 644
PAGE 54
SIX YEAR REVIEW
Notes:1. 2011 was a 53 week period. 2. The 26 year compound growth rates, reflected on pages 54 to 59, are
calculated from the date of acquiring joint control in 1986. 3. Definitions are found on page 179.
(R'000)
26 yearcompoundgrowth %
Five yearcompoundgrowth % 2012 2011 2010 2009 2008 2007
Statement of financial position
Assets
Non-current assets 743 404 607 681 686 475 893 460 846 334 712 485
Property, plant and equipment 539 463 459 634 530 407 603 299 566 176 464 082
Export partnerships - - - 220 254 220 310 201 688
Other 203 941 148 047 156 068 69 907 59 848 46 715
Current assets 3 551 664 3 253 456 2 923 769 2 377 410 1 945 182 1 781 177
Inventories 1 168 191 953 666 934 671 1 002 456 909 094 741 229
Trade and other receivables 1 182 895 931 278 818 355 714 167 570 811 469 003
Cash 1 200 578 1 368 512 1 170 743 660 787 465 277 570 945
4 295 068 3 861 137 3 610 244 3 270 870 2 791 516 2 493 662
Equity and liabilities
Equity attributable to shareholders 2 779 516 2 394 184 2 070 823 1 764 187 1 479 331 1 316 808
Non-current liabilities 194 474 179 010 200 966 225 673 241 142 231 263
Current liabilities 1 321 078 1 287 943 1 338 455 1 281 010 1 071 043 945 591
Trade and other payables 1 234 918 1 241 624 1 310 170 1 208 450 1 034 118 821 139
Other 86 160 46 319 28 285 72 560 36 925 124 452
4 295 068 3 861 137 3 610 244 3 270 870 2 791 516 2 493 662
Statement of cash flows
Cash flows from operating activities 1 059 002 1 104 698 1 021 444 783 153 578 774 387 945
Cash flows from investing activities 310 244 155 043 100 924 219 246 255 020 237 381
Cash flows from financing activities 913 375 748 026 401 799 367 135 429 598 203 691
Net (decrease)/increase in cash and cash equivalents 164 617 201 629 518 721 196 772 105 844 53 127
Cash and cash equivalents at beginning of the year 1 368 512 1 170 743 660 787 465 277 570 945 624 523
Exchange (losses)/gains 3 317 3 860 8 765 1 262 176 451
Cash and cash equivalents at end of the year 1 200 578 1 368 512 1 170 743 660 787 465 277 570 945
Income statement
Retail sales 21.1% 14.2% 11 766 765 10 673 364 9 454 130 8 591 258 7 203 640 6 056 757
Profit from operating activities 24.0% 23.2% 1 741 823 1 433 768 991 518 827 188 716 180 612 685
Profit attributable to shareholders 27.5% 20.5% 1 217 101 1 010 254 673 568 615 723 550 943 479 164
Headline earnings attributable to shareholders 27.5% 20.5% 1 222 375 1 026 399 682 135 622 724 553 165 480 644
200
400
600
800
1 000
1 200
1 400
2007 2008 2009 2010 2011 2012
1 000
2 000
3 000
4 000
5 000
2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012
2007 2008 2009 2010 2011 2012
2 000
4 000
6 000
8 000
10 000
12 000
500
1 000
1 500
2 000
2007 2008 2009 2010 2011 2012
20
40
60
80
100
200
400
600
800
1 000
1 200
2007 2008 2009 2010 2011 2012
2 000
4 000
6 000
8 000
10 000
12 000
3
6
9
12
15
100
200
300
400
500
2007 2008 2009 2010 2011 2012
Total assets (R’million)
Cash generated and cash at year end (R’million)
Retail sales and operating profit (R’million)
Retail sales
Reta
il sa
les
Cash generated from operating activities
Cash at year end
Operating profit
Op
erat
ing
pro
fit
Sales split and number of active accounts
2007 2008 2009 2010 2011 2012
200
400
600
800
1 000
100 000
200 000
300 000
400 000
500 000
600 000
Number of stores Weighted average net m2
Number of stores and trading area
Num
ber
of F
TE a
ssoc
iate
s
Cash sales (%)
Sale
s co
ntrib
utio
n (%
)
Credit sales (%)Number of active accounts (000)
Num
ber
of a
ctiv
e ac
coun
ts (0
00)
Retail sales and operating margin
%
Den
sity
- R/
m2
Num
ber
of s
tore
s
m2
Reta
il sa
les
(R’ m
illio
n)
Op
erat
ing
mar
gin
%
Hea
dlin
e ea
rnin
gs (c
ents
)
Div
iden
ds (c
ents
)
Retail sales Operating margin (%)
Headline earnings per share Dividends per share
Return on net worth, equity and capital employed
Headline earnings and dividends per share
Return on net worth (%) Return on average shareholders equity (%)
Return on capital employed (%)
2007 2008 2009 2010 2011 2012
5 000
10 000
15 000
20 000
25 000
10 000
11 000
12 000
13 000
14 000Sales density and number of FTE associates
Sales density FTE associates
50
100
150
200
250
300
350
10203040506070
( )( )( )
( )( )
( )
( )
MR PRICE GROUP 2012 - PAGE 55
Stores and productivity measures
Ratios/indicators
26 year compound growth %
Five year compound growth % 2012 2011 2010 2009 2008 2007
Operating statistics
Depreciation as a % sales a
1.4 1.6 1.7 1.8 1.8 1.7
Employment costs as a % sales b
11.9 11.9 11.8 11.9 12.3 12.7
Occupancy costs as a % sales c 7.5 8.0 8.3 8.3 8.0 7.7
Total expenses as a % sales 29.6 30.7 31.6 31.6 31.5 31.5
Number of stores
Mr Price Apparel 353 340 338 326 315 305
Mr Price Sport 47 40 36 31 23 8
Miladys 188 198 214 215 196 184
Total Apparel stores 588 578 588 572 534 497
Mr Price Home 140 130 136 138 140 136
Sheet Street 234 229 238 244 222 196
Total Home stores 374 359 374 382 362 332
Franchise 28 24 27 17 7 1
Total stores 8.8% 3.6% 990 961 989 971 903 830
FTE associates d
12 994 12 585 12 536 12 472 11 884 11 036
Trading area
- weighted average net m² 508 390 508 316 504 707 483 141 414 773 347 060
- closing net m² 11.0% 6.4% 515 833 501 497 513 347 498 884 439 901 377 813
Retail sales (R'000) 21.1% 14.2% 11 766 765 10 673 364 9 454 130 8 591 258 7 203 640 6 056 757
Traditional comparable sales growth % 8.2 10.2 6.5 7.8 6.4 8.0
Retail selling price inflation % 5.0 3.0 5.6 5.0 11.5 6.9
Cash sales % 81.4 83.8 83.9 84.0 84.2 84.1
Credit sales % 18.6 16.2 16.1 16.0 15.8 15.9
Sales per store excluding Franchise stores (R'000) 12 232 11 391 9 828 9 006 8 040 7 306
Sales per FTE associates (Rand) 905 560 848 102 754 170 688 854 606 170 548 804
Sales density excluding sales to Franchises (Rand per weighted average net m2)
22 979 20 787 18 492 17 445 17 256 17 436
PAGE 56
Notes:1. 2011 was a 53 week period.2. The 26 year compound growth rates, reflected on pages 54 to 59, are
calculated from the date of acquiring joint control in 1986.3. Definitions are found on page 179.
a Depreciation on property, plant and equipment only.b Employment costs include salaries, wages and other benefits, incentives,
share-based payments, restraint of trade expenses, defined contribution pension fund expense, defined benefit pension fund net expense and post retirement medical aid benefits.
c Occupancy costs include land and building lease expenses, including straight line lease adjustments.
d FTE: Full-time equivalent.
Ratios/indicators
26 year compound growth %
Five year compound growth % 2012 2011 2010 2009 2008 2007
Operating statistics
Depreciation as a % sales a
1.4 1.6 1.7 1.8 1.8 1.7
Employment costs as a % sales b
11.9 11.9 11.8 11.9 12.3 12.7
Occupancy costs as a % sales c 7.5 8.0 8.3 8.3 8.0 7.7
Total expenses as a % sales 29.6 30.7 31.6 31.6 31.5 31.5
Number of stores
Mr Price Apparel 353 340 338 326 315 305
Mr Price Sport 47 40 36 31 23 8
Miladys 188 198 214 215 196 184
Total Apparel stores 588 578 588 572 534 497
Mr Price Home 140 130 136 138 140 136
Sheet Street 234 229 238 244 222 196
Total Home stores 374 359 374 382 362 332
Franchise 28 24 27 17 7 1
Total stores 8.8% 3.6% 990 961 989 971 903 830
FTE associates d
12 994 12 585 12 536 12 472 11 884 11 036
Trading area
- weighted average net m² 508 390 508 316 504 707 483 141 414 773 347 060
- closing net m² 11.0% 6.4% 515 833 501 497 513 347 498 884 439 901 377 813
Retail sales (R'000) 21.1% 14.2% 11 766 765 10 673 364 9 454 130 8 591 258 7 203 640 6 056 757
Traditional comparable sales growth % 8.2 10.2 6.5 7.8 6.4 8.0
Retail selling price inflation % 5.0 3.0 5.6 5.0 11.5 6.9
Cash sales % 81.4 83.8 83.9 84.0 84.2 84.1
Credit sales % 18.6 16.2 16.1 16.0 15.8 15.9
Sales per store excluding Franchise stores (R'000) 12 232 11 391 9 828 9 006 8 040 7 306
Sales per FTE associates (Rand) 905 560 848 102 754 170 688 854 606 170 548 804
Sales density excluding sales to Franchises (Rand per weighted average net m2)
22 979 20 787 18 492 17 445 17 256 17 436
SIX YEAR REVIEWCONTINUED
200
400
600
800
1 000
1 200
1 400
2007 2008 2009 2010 2011 2012
1 000
2 000
3 000
4 000
5 000
2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012
2007 2008 2009 2010 2011 2012
2 000
4 000
6 000
8 000
10 000
12 000
500
1 000
1 500
2 000
2007 2008 2009 2010 2011 2012
20
40
60
80
100
200
400
600
800
1 000
1 200
2007 2008 2009 2010 2011 2012
2 000
4 000
6 000
8 000
10 000
12 000
3
6
9
12
15
100
200
300
400
500
2007 2008 2009 2010 2011 2012
Total assets (R’million)
Cash generated and cash at year end (R’million)
Retail sales and operating profit (R’million)
Retail sales
Reta
il sa
les
Cash generated from operating activities
Cash at year end
Operating profit
Op
erat
ing
pro
fit
Sales split and number of active accounts
2007 2008 2009 2010 2011 2012
200
400
600
800
1 000
100 000
200 000
300 000
400 000
500 000
600 000
Number of stores Weighted average net m2
Number of stores and trading area
Num
ber
of F
TE a
ssoc
iate
s
Cash sales (%)
Sale
s co
ntrib
utio
n (%
)
Credit sales (%)Number of active accounts (000)
Num
ber
of a
ctiv
e ac
coun
ts (0
00)
Retail sales and operating margin
%
Den
sity
- R/
m2
Num
ber
of s
tore
s
m2
Reta
il sa
les
(R’ m
illio
n)
Op
erat
ing
mar
gin
%
Hea
dlin
e ea
rnin
gs (c
ents
)
Div
iden
ds (c
ents
)
Retail sales Operating margin (%)
Headline earnings per share Dividends per share
Return on net worth, equity and capital employed
Headline earnings and dividends per share
Return on net worth (%) Return on average shareholders equity (%)
Return on capital employed (%)
2007 2008 2009 2010 2011 2012
5 000
10 000
15 000
20 000
25 000
10 000
11 000
12 000
13 000
14 000Sales density and number of FTE associates
Sales density FTE associates
50
100
150
200
250
300
350
10203040506070
MR PRICE GROUP 2012 - PAGE 57
Returns, profitability and share information
Ratios/indicators
26 year compound growth %
Five year compound growth % 2012 2011 2010 2009 2008 2007
Productivity ratios
Net asset turn 4.2 4.5 4.5 4.8 4.8 4.5
Gross margin (%) 41.8 41.9 39.9 39.0 39.4 40.0
Operating margin (%) 14.8 13.4 10.5 9.6 9.9 10.1
EBITDA margin (%) 16.4 15.2 10.7 12.0 12.2 12.3
Profitability and gearing ratios (%)
Return on net worth 43.8 42.2 32.5 34.9 37.2 36.4
Return on average shareholders equity 47.2 46.0 35.6 38.4 39.6 41.0
Return on capital employed 62.7 63.6 42.6 52.5 52.1 53.0
Return on operating assets 67.2 63.8 52.4 52.9 52.5 51.5
Solvency and liquidity ratios Current ratio 2.7 2.5 2.2 1.9 1.8 1.9
Quick ratio 1.8 1.8 1.5 1.1 1.0 1.1
Inventory turn 6.5 6.6 5.9 5.5 5.3 5.7
Total liabilities to total shareholders equity 0.5 0.6 0.7 0.9 0.9 0.9
Per share performance (cents)
Headline earnings 23.4% 21.3% 503.0 418.9 276.9 251.9 219.0 191.8
Diluted headline earnings 23.0% 20.4% 464.5 388.8 263.0 244.6 210.8 183.6
Dividends 25.3% 25.5% 314.0 252.0 173.0 133.0 116.0 101.0
Operating cash flow 436 451 415 317 229 155
Net worth 1 140 978 837 717 598 523
Stock exchange information
Number of shares in issue net of shares held by staff trusts (000)
243 922 244 845 247 298 245 946 247 332 251 882
Number of shares on which earnings based (000) 242 996 245 024 246 320 247 175 252 599 250 553
Shares traded (000) 287 699 284 749 251 912 308 975 271 233 238 286
Percentage of shares traded (%) 118.4 116.2 102.3 125.0 109.7 101.5
Earnings yield (%) 5.3 6.6 7.0 10.4 12.0 6.4
Dividend yield (%) 3.5 4.0 4.3 5.5 6.4 3.4
Dividend cover 1.6 1.6 1.6 1.9 1.9 1.9
P:E ratio 18.8 15.1 14.4 9.6 8.3 15.5
Market capitalisation (R'm) 23 561 15 744 9 837 5 994 4 498 6 995
Share price (cents)
- high 9 434 6 908 4 318 2 651 3 340 3 189
- low 6 190 4 026 2 435 1 440 1 719 1 600
- closing 27.0% 25.9% 9 434 6 338 3 980 2 425 1 820 2 980
Foreign shareholding at year end (%) 36.4 29.2 16.7 20.3 12.1 18.1
PAGE 58
Notes: 1. 2011 was a 53 week period.2. The 26 year compound growth rates, reflected on pages 54 to 59, are
calculated from the date of aquiring joint control in 1986. 3. Definitions are found on page 179.
SIX YEAR REVIEW
Ratios/indicators
26 year compound growth %
Five year compound growth % 2012 2011 2010 2009 2008 2007
Productivity ratios
Net asset turn 4.2 4.5 4.5 4.8 4.8 4.5
Gross margin (%) 41.8 41.9 39.9 39.0 39.4 40.0
Operating margin (%) 14.8 13.4 10.5 9.6 9.9 10.1
EBITDA margin (%) 16.4 15.2 10.7 12.0 12.2 12.3
Profitability and gearing ratios (%)
Return on net worth 43.8 42.2 32.5 34.9 37.2 36.4
Return on average shareholders equity 47.2 46.0 35.6 38.4 39.6 41.0
Return on capital employed 62.7 63.6 42.6 52.5 52.1 53.0
Return on operating assets 67.2 63.8 52.4 52.9 52.5 51.5
Solvency and liquidity ratios Current ratio 2.7 2.5 2.2 1.9 1.8 1.9
Quick ratio 1.8 1.8 1.5 1.1 1.0 1.1
Inventory turn 6.5 6.6 5.9 5.5 5.3 5.7
Total liabilities to total shareholders equity 0.5 0.6 0.7 0.9 0.9 0.9
Per share performance (cents)
Headline earnings 23.4% 21.3% 503.0 418.9 276.9 251.9 219.0 191.8
Diluted headline earnings 23.0% 20.4% 464.5 388.8 263.0 244.6 210.8 183.6
Dividends 25.3% 25.5% 314.0 252.0 173.0 133.0 116.0 101.0
Operating cash flow 436 451 415 317 229 155
Net worth 1 140 978 837 717 598 523
Stock exchange information
Number of shares in issue net of shares held by staff trusts (000)
243 922 244 845 247 298 245 946 247 332 251 882
Number of shares on which earnings based (000) 242 996 245 024 246 320 247 175 252 599 250 553
Shares traded (000) 287 699 284 749 251 912 308 975 271 233 238 286
Percentage of shares traded (%) 118.4 116.2 102.3 125.0 109.7 101.5
Earnings yield (%) 5.3 6.6 7.0 10.4 12.0 6.4
Dividend yield (%) 3.5 4.0 4.3 5.5 6.4 3.4
Dividend cover 1.6 1.6 1.6 1.9 1.9 1.9
P:E ratio 18.8 15.1 14.4 9.6 8.3 15.5
Market capitalisation (R'm) 23 561 15 744 9 837 5 994 4 498 6 995
Share price (cents)
- high 9 434 6 908 4 318 2 651 3 340 3 189
- low 6 190 4 026 2 435 1 440 1 719 1 600
- closing 27.0% 25.9% 9 434 6 338 3 980 2 425 1 820 2 980
Foreign shareholding at year end (%) 36.4 29.2 16.7 20.3 12.1 18.1
CONTINUED
200
400
600
800
1 000
1 200
1 400
2007 2008 2009 2010 2011 2012
1 000
2 000
3 000
4 000
5 000
2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012
2007 2008 2009 2010 2011 2012
2 000
4 000
6 000
8 000
10 000
12 000
500
1 000
1 500
2 000
2007 2008 2009 2010 2011 2012
20
40
60
80
100
200
400
600
800
1 000
1 200
2007 2008 2009 2010 2011 2012
2 000
4 000
6 000
8 000
10 000
12 000
3
6
9
12
15
100
200
300
400
500
2007 2008 2009 2010 2011 2012
Total assets (R’million)
Cash generated and cash at year end (R’million)
Retail sales and operating profit (R’million)
Retail sales
Reta
il sa
les
Cash generated from operating activities
Cash at year end
Operating profit
Op
erat
ing
pro
fit
Sales split and number of active accounts
2007 2008 2009 2010 2011 2012
200
400
600
800
1 000
100 000
200 000
300 000
400 000
500 000
600 000
Number of stores Weighted average net m2
Number of stores and trading area
Num
ber
of F
TE a
ssoc
iate
s
Cash sales (%)
Sale
s co
ntrib
utio
n (%
)
Credit sales (%)Number of active accounts (000)
Num
ber
of a
ctiv
e ac
coun
ts (0
00)
Retail sales and operating margin
%
Den
sity
- R/
m2
Num
ber
of s
tore
s
m2
Reta
il sa
les
(R’ m
illio
n)
Op
erat
ing
mar
gin
%
Hea
dlin
e ea
rnin
gs (c
ents
)
Div
iden
ds (c
ents
)
Retail sales Operating margin (%)
Headline earnings per share Dividends per share
Return on net worth, equity and capital employed
Headline earnings and dividends per share
Return on net worth (%) Return on average shareholders equity (%)
Return on capital employed (%)
2007 2008 2009 2010 2011 2012
5 000
10 000
15 000
20 000
25 000
10 000
11 000
12 000
13 000
14 000Sales density and number of FTE associates
Sales density FTE associates
50
100
150
200
250
300
350
10203040506070
MR PRICE GROUP 2012 - PAGE 59
