JSE: MRP Attempts Trend Reversal After 15% Mr Price Share Price Rise as Earnings Beat Expectations and Telecom Delivers Strong Growth
Mr Price shares surged on Friday after annual results reassured investors with resilient earnings growth, a stable dividend, and continued expansion in the retailer’s telecoms business.
Quick overview
- Mr Price shares surged nearly 15% following the release of annual results, reflecting strong investor confidence.
- The company reported a 2.4% increase in diluted headline earnings per share, with normalized earnings showing an 8% rise after accounting for acquisition costs.
- Mr Price's telecommunications division experienced a 10.3% revenue increase, contributing significantly to the group's overall performance.
- Despite rising operating costs, investors remain optimistic about Mr Price's long-term growth potential and market share gains.
Mr Price shares surged on Friday after annual results reassured investors with resilient earnings growth, a stable dividend, and continued expansion in the retailer’s telecoms business.
Mr Price Shares Surge Following Annual Results
Shares of Mr Price Group jumped nearly 15% on Friday, closing the week around R172 as investors responded positively to the retailer’s latest annual results.
The sharp rally added billions of rand to the company’s market value and marked one of the strongest trading sessions for the stock in recent months. The move also helped reverse part of the downward trend that had weighed on the shares amid concerns surrounding consumer spending and the integration of acquired businesses.
Investor sentiment was supported by a combination of earnings growth, a maintained dividend, and easing worries regarding the company’s acquisition of NKD Group.
Earnings Growth Remains Resilient
For the financial year ended 28 March 2026, Mr Price reported a 2.4% increase in diluted headline earnings per share (DHEPS) to R14.11.
While the growth rate was modest, earnings were impacted by a one-off acquisition-related cost of R217 million linked to the purchase of Germany-based discount retailer NKD Group.
Excluding this non-recurring expense, normalized DHEPS increased by 8% to R14.89, highlighting stronger underlying operational performance than the headline figures initially suggested.
The results reassured investors that the company continues to deliver growth despite a challenging retail environment and ongoing integration costs.
Telecoms Division Continues to Expand
One of the standout performers within the group was Mr Price’s telecommunications segment, which includes Mr Price Cellular and Powercell.
Revenue from the division increased 10.3% year-over-year to R1.46 billion, up from R1.33 billion in the previous financial year. The segment also generated approximately R150 million in profit before finance costs and finance income, demonstrating its growing contribution to the broader group.
Although profit declined slightly from the previous year’s R151 million, the business continued to deliver strong operational performance while expanding its market position.
The telecoms division now contributes approximately 3.6% of the group’s total retail sales, making it an increasingly important part of Mr Price’s diversification strategy.
Share Price Weakness Deepens as Key Technical Levels Break Down
After the company’s solid performance, the market is sending bullish reversing signals. Mr Price shares have almost reclaimed all losses for the year, erasing much of the loses seen in the last two years, after the stock nearly halved in value. Today the shares have climbed above most moving averages, but buyers will need to push above the 200 daily SMA for the trend to turn bullish.
MRP Chart Daily – Pushing Above MAs
The chart picture is now improving after deteriorating materially for 17 months: after a failed recovery attempt in April, the stock was repeatedly rejected at the 50-week simple moving average. But we saw a strong push after earnings above MAs. This dynamic confirmed that buyers might be regainwing long-term momentum.
MRP Chart Monthly – The 200 SMA Holds Again
The 200-week simple moving average has been holding well as support on the monthly chart, a historically significant support indicator that held during pullbacks in 2020 and 2023. It seems like it is holding again as we’re seeing the beginning of a long term rebound now.
Market Share Gains Support Confidence
Additional encouragement came from industry data showing that Mr Price Cellular and Powercell increased their market share during the year.
According to GfK data, the businesses expanded their market share by 0.2 percentage points, reinforcing management’s efforts to strengthen the group’s presence in the competitive mobile and telecommunications market.
The growth demonstrates that the company continues attracting customers despite intense competition and changing consumer spending patterns.
Investors Focus on Long-Term Potential
While some operating costs increased during the year, including higher selling expenses and rising cost of sales, investors appeared willing to look beyond those pressures.
The combination of steady earnings growth, a reliable dividend policy, telecoms expansion, and improving confidence around the NKD acquisition helped support a strong market reaction.
With the telecoms segment continuing to grow and core retail operations remaining resilient, investors viewed the results as evidence that Mr Price Group remains well positioned to pursue long-term growth opportunities across multiple consumer-focused businesses.
Mr Price Earnings Highlights
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